Sanmenxia Tianyuan Aluminum Co (HKSE:08253) Inventory Turnover : 14.47 (As of Dec. 2010)

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What is Sanmenxia Tianyuan Aluminum Co 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. Sanmenxia Tianyuan Aluminum Co's Cost of Goods Sold for the six months ended in Dec. 2010 was HK$1,609 Mil. Sanmenxia Tianyuan Aluminum Co's Average Total Inventories for the quarter that ended in Dec. 2010 was HK$108 Mil. Sanmenxia Tianyuan Aluminum Co's Inventory Turnover for the quarter that ended in Dec. 2010 was 14.47.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Sanmenxia Tianyuan Aluminum Co's Days Inventory for the six months ended in Dec. 2010 was 12.21.

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. Sanmenxia Tianyuan Aluminum Co's Inventory-to-Revenue for the quarter that ended in Dec. 2010 was 0.07.

Sanmenxia Tianyuan Aluminum Co Inventory Turnover Historical Data

The historical data trend for Sanmenxia Tianyuan Aluminum Co'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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Sanmenxia Tianyuan Aluminum Co Inventory Turnover Chart

Sanmenxia Tianyuan Aluminum Co Annual Data

Trend

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Inventory Turnover

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15.58

14.34

14.69

9.30

14.95

Sanmenxia Tianyuan Aluminum Co Semi-Annual Data
	Dec03	Dec04	Dec05	Dec06	Dec07	Dec08	Dec09	Dec10
Inventory Turnover	Get a 7-Day Free Trial			15.58	14.34	14.69	9.30	14.47

Sanmenxia Tianyuan Aluminum Co Inventory Turnover Calculation

Sanmenxia Tianyuan Aluminum Co's Inventory Turnover for the fiscal year that ended in Dec. 2010 is calculated as

	Inventory Turnover (A: Dec. 2010 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2010 )	/ (	(Total Inventories (A: Dec. 2009 )	+	Total Inventories (A: Dec. 2010 ))	/	count )
=	1609.179	/ (	(104.111	+	111.229)	/	2 )
=	1609.179	/	107.67
=	14.95

Sanmenxia Tianyuan Aluminum Co's Inventory Turnover for the quarter that ended in Dec. 2010 is calculated as

	Inventory Turnover (Q: Dec. 2010 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2010 )	/ (	(Total Inventories (Q: Dec. 2009 )	+	Total Inventories (Q: Dec. 2010 ))	/	count )
=	1609.179	/ (	(104.111	+	111.229)	/	2 )
=	1609.179	/	107.67
=	14.95

Sanmenxia Tianyuan Aluminum Co (HKSE:08253) 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.

Sanmenxia Tianyuan Aluminum Co's Days Inventory for the six months ended in Dec. 2010 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2010 )	/	Cost of Goods Sold (Q: Dec. 2010 )	*	Days in Period
	=	107.67	/	1609.179	*	365 / 2
	=	12.21

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.

Sanmenxia Tianyuan Aluminum Co's Inventory to Revenue for the quarter that ended in Dec. 2010 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2010 )	/	Revenue (Q: Dec. 2010 )
	=	107.67	/	1528.66
	=	0.07

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.

Sanmenxia Tianyuan Aluminum Co Inventory Turnover Related Terms

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Sanmenxia Tianyuan Aluminum Co (HKSE:08253) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Sanmenxia Tianyuan Aluminum Co Ltd (HKSE:08253) » Definitions » Inventory Turnover

Traded in Other Exchanges

N/A

Address

Website

http://www.styal.com.cn/

Sanmenxia Tianyuan Aluminum Co. is mainly engaged in aluminum and aluminum alloy ingots production and sales, as well as import business concerning reasearch required materials and equipments.

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