SolarWorld AG (HAM:SWVK) Inventory Turnover: 0.67 (As of Dec. 2016)


What is SolarWorld AG Inventory Turnover?

SolarWorld AG HAM:SWVK +23.68% Inventory Turnover is 0.67 as of Dec. 2016.

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. SolarWorld AG's Cost of Goods Sold for the three months ended in Dec. 2016 was €137.4 Mil. SolarWorld AG's Average Total Inventories for the quarter that ended in Dec. 2016 was €206.0 Mil. SolarWorld AG's Inventory Turnover for the quarter that ended in Dec. 2016 was 0.67.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. SolarWorld AG's Days Inventory for the three months ended in Dec. 2016 was 136.78.

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. SolarWorld AG's Inventory-to-Revenue for the quarter that ended in Dec. 2016 was 1.25.

SolarWorld AG  (HAM:SWVK) 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.

SolarWorld AG's Days Inventory for the three months ended in Dec. 2016 is calculated as:

Days Inventory =Average Total Inventories (Q: Dec. 2016 )/Cost of Goods Sold (Q: Dec. 2016 )*Days in Period
=206.0205/137.438*365 / 4
=136.78

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.

SolarWorld AG's Inventory to Revenue for the quarter that ended in Dec. 2016 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Dec. 2016 ) / Revenue (Q: Dec. 2016 )
=206.0205 / 164.412
=1.25

* 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.

SolarWorld AG Inventory Turnover Related Terms

SolarWorld AG Inventory Turnover Historical Data

* Premium members only.

The historical data trend for SolarWorld AG'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.

SolarWorld AG Inventory Turnover Chart

SolarWorld AG Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.99 2.13 2.78 2.98 3.10

SolarWorld AG Quarterly Data
Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16
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 0.84 0.77 0.75 0.68 0.67

SolarWorld AG Inventory Turnover Calculation

SolarWorld AG's Inventory Turnover for the fiscal year that ended in Dec. 2016 is calculated as

Inventory Turnover (A: Dec. 2016 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2016 ) / ((Total Inventories (A: Dec. 2015 ) + Total Inventories (A: Dec. 2016 )) / count )
=554.214 / ((171.563 + 185.693) / 2 )
=554.214 / 178.628
=3.10

SolarWorld AG's Inventory Turnover for the quarter that ended in Dec. 2016 is calculated as

Inventory Turnover (Q: Dec. 2016 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Dec. 2016 ) / ((Total Inventories (Q: Sep. 2016 ) + Total Inventories (Q: Dec. 2016 )) / count )
=137.438 / ((226.348 + 185.693) / 2 )
=137.438 / 206.0205
=0.67

* 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 0.67 mean?
SolarWorld AG (HAM:SWVK) has a Inventory Turnover of 0.67 as of Dec. 2016. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on SolarWorld AG and its competitors.
Is SolarWorld AG's Inventory Turnover too high?
SolarWorld AG's current Inventory Turnover is 0.67.
How does SolarWorld AG's Inventory Turnover compare to SUNW and RGSE?
SolarWorld AG's Inventory Turnover of 0.67 can be compared against companies in the Semiconductors 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 Semiconductors company?
A good Inventory Turnover depends on the Semiconductors 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 SolarWorld AG and its competitors. SolarWorld AG's current Inventory Turnover is 0.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SolarWorld AG stock overvalued right now?
SolarWorld AG (HAM:SWVK) has a current Inventory Turnover of 0.67. The current Inventory Turnover is 0.67. 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 SolarWorld AG (HAM:SWVK), the current Inventory Turnover is 0.67 as of Dec. 2016. 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.

SolarWorld AG Business Description

Address Martin-Luther-King-Street 24, Bonn, DEU, 53175
SolarWorld AG is a manufacturer of solar power products. It also researches, develops, produces and recycles on all levels of the solar value-added chain. It also focuses on the production and international distribution of high-end solar energy facilities. The business operates through segments that include Production Germany, Production United States, Trade, and Others. The Trade segment generates maximum revenue for the company. Its product line consists of module and assembly kit, cells and wafers, power generation, and other revenue. The sales of module and assembly kit generate maximum revenue for the company.