FRMB (Forum Mobile) Inventory Turnover: 1.92 (As of Jun. 2006)


What is Forum Mobile Inventory Turnover?

Forum Mobile FRMB -99.00% Inventory Turnover is 1.92 as of Jun. 2006.

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. Forum Mobile's Cost of Goods Sold for the three months ended in Jun. 2006 was $5.45 Mil. Forum Mobile's Average Total Inventories for the quarter that ended in Jun. 2006 was $2.84 Mil. Forum Mobile's Inventory Turnover for the quarter that ended in Jun. 2006 was 1.92.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Forum Mobile's Days Inventory for the three months ended in Jun. 2006 was 47.63.

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. Forum Mobile's Inventory-to-Revenue for the quarter that ended in Jun. 2006 was 0.49.

Forum Mobile  (OTCPK:FRMB) 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.

Forum Mobile's Days Inventory for the three months ended in Jun. 2006 is calculated as:

Days Inventory =Average Total Inventories (Q: Jun. 2006 )/Cost of Goods Sold (Q: Jun. 2006 )*Days in Period
=2.844/5.449*365 / 4
=47.63

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.

Forum Mobile's Inventory to Revenue for the quarter that ended in Jun. 2006 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Jun. 2006 ) / Revenue (Q: Jun. 2006 )
=2.844 / 5.786
=0.49

* 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.

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.

Forum Mobile Inventory Turnover Related Terms

Forum Mobile Inventory Turnover Historical Data

* Premium members only.

The historical data trend for Forum Mobile'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.

Forum Mobile Inventory Turnover Chart

Forum Mobile Annual Data
Trend Dec00 Dec01 Dec02 Dec03 Dec04 Dec05
Inventory Turnover
Get a 7-Day Free Trial 8.62 10.38 0.00 0.00 6.02

Forum Mobile Quarterly Data
Sep01 Dec01 Mar02 Jun02 Sep02 Dec02 Mar03 Jun03 Sep03 Dec03 Mar04 Jun04 Sep04 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06
Inventory Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.41 1.24 1.64 1.47 1.92

Forum Mobile Inventory Turnover Calculation

Forum Mobile's Inventory Turnover for the fiscal year that ended in Dec. 2005 is calculated as

Inventory Turnover (A: Dec. 2005 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2005 ) / ((Total Inventories (A: Dec. 2004 ) + Total Inventories (A: Dec. 2005 )) / count )
=22.301 / ((0 + 3.702) / 1 )
=22.301 / 3.702
=6.02

Forum Mobile's Inventory Turnover for the quarter that ended in Jun. 2006 is calculated as

Inventory Turnover (Q: Jun. 2006 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Jun. 2006 ) / ((Total Inventories (Q: Mar. 2006 ) + Total Inventories (Q: Jun. 2006 )) / count )
=5.449 / ((4.045 + 1.643) / 2 )
=5.449 / 2.844
=1.92

* 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.

Frequently Asked Questions Learn more about Inventory Turnover →
What does a Inventory Turnover of 1.92 mean?
Forum Mobile (FRMB) has a Inventory Turnover of 1.92 as of Jun. 2006. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Forum Mobile and its competitors.
Is Forum Mobile's Inventory Turnover too high?
Forum Mobile's current Inventory Turnover is 1.92.
How does Forum Mobile's Inventory Turnover compare to DIRV and FULO?
Forum Mobile's Inventory Turnover of 1.92 can be compared against companies in the Telecommunication Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Inventory Turnover for a Telecommunication Services company?
A good Inventory Turnover depends on the Telecommunication Services industry context. However, Inventory Turnover should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Inventory Turnover mean?
A high Inventory Turnover can signal that a stock is expensive relative to its fundamentals. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Forum Mobile and its competitors. Forum Mobile's current Inventory Turnover is 1.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Forum Mobile stock overvalued right now?
Forum Mobile (FRMB) has a current Inventory Turnover of 1.92. The current Inventory Turnover is 1.92. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Inventory Turnover calculated?
Inventory Turnover is calculated from a company's financial statements. For Forum Mobile (FRMB), the current Inventory Turnover is 1.92 as of Jun. 2006. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Forum Mobile Business Description

Address 26 Broadway, 21st Floor, New York, NY, USA, 10004
Forum Mobile Inc is a global Mobile Virtual Network Enabler (MVNE) based in the USA. It specializes in MVNE, Mobile Services, Telecom, and cloud services. The company is active in a variety of complementary fields such as private banking, business development, and consulting, and provides hosting and trading platforms. Geographically the business activities are operated through the United States.