Wolfson Microelectronics (FRA:WOL1) Inventory Turnover : 0.59 (As of Mar. 2014)

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What is Wolfson Microelectronics Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Wolfson Microelectronics's Cost of Goods Sold for the three months ended in Mar. 2014 was €11.0 Mil. Wolfson Microelectronics's Average Total Inventories for the quarter that ended in Mar. 2014 was €18.7 Mil. Wolfson Microelectronics's Inventory Turnover for the quarter that ended in Mar. 2014 was 0.59.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Wolfson Microelectronics's Days Inventory for the three months ended in Mar. 2014 was 155.05.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Wolfson Microelectronics's Inventory-to-Revenue for the quarter that ended in Mar. 2014 was 0.90.

Wolfson Microelectronics Inventory Turnover Historical Data

The historical data trend for Wolfson Microelectronics's Inventory Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Wolfson Microelectronics Inventory Turnover Chart

Wolfson Microelectronics Annual Data

Trend

Dec01

Dec02

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec12

Dec13

Inventory Turnover

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4.91

4.39

4.73

4.43

4.14

Wolfson Microelectronics Quarterly Data
	Mar09	Jun09	Sep09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14
Inventory Turnover	Get a 7-Day Free Trial															1.06	0.79	0.75	0.87	0.59

Wolfson Microelectronics Inventory Turnover Calculation

Wolfson Microelectronics's Inventory Turnover for the fiscal year that ended in Dec. 2013 is calculated as

	Inventory Turnover (A: Dec. 2013 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2013 )	/ (	(Total Inventories (A: Dec. 2012 )	+	Total Inventories (A: Dec. 2013 ))	/	count )
=	75.523	/ (	(18.823	+	17.681)	/	2 )
=	75.523	/	18.252
=	4.14

Wolfson Microelectronics's Inventory Turnover for the quarter that ended in Mar. 2014 is calculated as

	Inventory Turnover (Q: Mar. 2014 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2014 )	/ (	(Total Inventories (Q: Dec. 2013 )	+	Total Inventories (Q: Mar. 2014 ))	/	count )
=	11.024	/ (	(17.681	+	19.783)	/	2 )
=	11.024	/	18.732
=	0.59

Wolfson Microelectronics (FRA:WOL1) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Wolfson Microelectronics's Days Inventory for the three months ended in Mar. 2014 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2014 )	/	Cost of Goods Sold (Q: Mar. 2014 )	*	Days in Period
	=	18.732	/	11.024	*	365 / 4
	=	155.05

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Wolfson Microelectronics's Inventory to Revenue for the quarter that ended in Mar. 2014 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2014 )	/	Revenue (Q: Mar. 2014 )
	=	18.732	/	20.826
	=	0.90

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Wolfson Microelectronics Inventory Turnover Related Terms

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Wolfson Microelectronics (FRA:WOL1) Business Description

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Website

http://www.wolfsonmicro.com

Wolfson Microelectronics PLC supplies high performance mixed-signal semiconductors to the consumer electronics market. The company's two segments are Audio Hubs and Discrete and Power Products. Audio Hubs includes the supply and sale of Audio Hubs high performance audio integrated circuit solutions. Discrete and Power Products includes the supply and sale of integrated circuits which are discrete components. The company operates in Japan, Asia Pacific, Americas and Europe.

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