WG Wearne (JSE:WEA) Inventory Turnover : 8.65 (As of Aug. 2017)

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What is WG Wearne 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. WG Wearne's Cost of Goods Sold for the six months ended in Aug. 2017 was R159.0 Mil. WG Wearne's Average Total Inventories for the quarter that ended in Aug. 2017 was R18.4 Mil. WG Wearne's Inventory Turnover for the quarter that ended in Aug. 2017 was 8.65.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. WG Wearne's Days Inventory for the six months ended in Aug. 2017 was 21.11.

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. WG Wearne's Inventory-to-Revenue for the quarter that ended in Aug. 2017 was 0.09.

WG Wearne Inventory Turnover Historical Data

The historical data trend for WG Wearne'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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WG Wearne Inventory Turnover Chart

WG Wearne Annual Data

Trend

Feb08

Feb09

Feb10

Feb11

Feb12

Feb13

Feb14

Feb15

Feb16

Feb17

Inventory Turnover

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16.98

15.90

12.02

12.48

15.24

WG Wearne Semi-Annual Data
	Feb08	Aug08	Feb09	Aug09	Feb10	Aug10	Feb11	Aug11	Feb12	Aug12	Feb13	Aug13	Feb14	Aug14	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17
Inventory Turnover	Get a 7-Day Free Trial															5.80	5.68	6.28	10.55	8.65

WG Wearne Inventory Turnover Calculation

WG Wearne's Inventory Turnover for the fiscal year that ended in Feb. 2017 is calculated as

	Inventory Turnover (A: Feb. 2017 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Feb. 2017 )	/ (	(Total Inventories (A: Feb. 2016 )	+	Total Inventories (A: Feb. 2017 ))	/	count )
=	347.633	/ (	(27.642	+	17.967)	/	2 )
=	347.633	/	22.8045
=	15.24

WG Wearne's Inventory Turnover for the quarter that ended in Aug. 2017 is calculated as

	Inventory Turnover (Q: Aug. 2017 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Aug. 2017 )	/ (	(Total Inventories (Q: Feb. 2017 )	+	Total Inventories (Q: Aug. 2017 ))	/	count )
=	158.999	/ (	(17.967	+	18.811)	/	2 )
=	158.999	/	18.389
=	8.65

WG Wearne (JSE:WEA) 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.

WG Wearne's Days Inventory for the six months ended in Aug. 2017 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Aug. 2017 )	/	Cost of Goods Sold (Q: Aug. 2017 )	*	Days in Period
	=	18.389	/	158.999	*	365 / 2
	=	21.11

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.

WG Wearne's Inventory to Revenue for the quarter that ended in Aug. 2017 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Aug. 2017 )	/	Revenue (Q: Aug. 2017 )
	=	18.389	/	213.226
	=	0.09

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.

WG Wearne Inventory Turnover Related Terms

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WG Wearne (JSE:WEA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » WG Wearne Ltd (JSE:WEA) » Definitions » Inventory Turnover

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Traded in Other Exchanges

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Address

300 Acacia Road, Stonemill Office Park, P.O Box 1674, 3 Kiepersol House, Cresta, ZAF, 2118

Website

http://www.wearne.co.za

WG Wearne Ltd is a supplier of materials and contracting services to the building and construction industry with a complete building material solution. The company is involved in various big construction projects such as the construction of Rand Afrikaans University, the Western Bypass, the Lesotho Highlands Water Scheme, Soccer City and FNB in Fairlands Johannesburg. It operates across South Africa with concentrated operations in Limpopo and Gauteng provinces. its products include sub base materials, concrete stone, road stone, dump rock, ballast stone, crusher sand, building sand, builders mix, plaster sand, generic concrete range, Wearne specialty concrete, high-performance concrete, base course materials and sub base materials.