KEGS (1812 Brewing Company) Inventory Turnover: 0.28 (As of Jun. 2009)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

What is 1812 Brewing Company Inventory Turnover?

1812 Brewing Company KEGS Inventory Turnover is 0.28 as of Jun. 2009.

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. 1812 Brewing Company's Cost of Goods Sold for the three months ended in Jun. 2009 was $1.26 Mil. 1812 Brewing Company's Average Total Inventories for the quarter that ended in Jun. 2009 was $4.46 Mil. 1812 Brewing Company's Inventory Turnover for the quarter that ended in Jun. 2009 was 0.28.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. 1812 Brewing Company's Days Inventory for the three months ended in Jun. 2009 was 324.17.

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. 1812 Brewing Company's Inventory-to-Revenue for the quarter that ended in Jun. 2009 was 2.06.

1812 Brewing Company  (OTCPK:KEGS) 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.

1812 Brewing Company's Days Inventory for the three months ended in Jun. 2009 is calculated as:

Days Inventory =Average Total Inventories (Q: Jun. 2009 )/Cost of Goods Sold (Q: Jun. 2009 )*Days in Period
=4.4585/1.255*365 / 4
=324.17

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.

1812 Brewing Company's Inventory to Revenue for the quarter that ended in Jun. 2009 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Jun. 2009 ) / Revenue (Q: Jun. 2009 )
=4.4585 / 2.161
=2.06

* 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.

1812 Brewing Company Inventory Turnover Related Terms

1812 Brewing Company Inventory Turnover Historical Data

* Premium members only.

The historical data trend for 1812 Brewing Company'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.

1812 Brewing Company Inventory Turnover Chart

1812 Brewing Company Annual Data
Trend Dec03 Dec04 Dec05 Dec06 Dec07 Dec08
Inventory Turnover
Get a 7-Day Free Trial 0.00 0.00 0.00 0.41 2.21

1812 Brewing Company Quarterly Data
Sep04 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09
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 0.49 0.45 0.72 0.40 0.28

1812 Brewing Company Inventory Turnover Calculation

1812 Brewing Company's Inventory Turnover for the fiscal year that ended in Dec. 2008 is calculated as

Inventory Turnover (A: Dec. 2008 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2008 ) / ((Total Inventories (A: Dec. 2007 ) + Total Inventories (A: Dec. 2008 )) / count )
=15.045 / ((6.194 + 7.417) / 2 )
=15.045 / 6.8055
=2.21

1812 Brewing Company's Inventory Turnover for the quarter that ended in Jun. 2009 is calculated as

Inventory Turnover (Q: Jun. 2009 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Jun. 2009 ) / ((Total Inventories (Q: Mar. 2009 ) + Total Inventories (Q: Jun. 2009 )) / count )
=1.255 / ((5.436 + 3.481) / 2 )
=1.255 / 4.4585
=0.28

* 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 0.28 mean?
1812 Brewing Company (KEGS) has a Inventory Turnover of 0.28 as of Jun. 2009. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on 1812 Brewing Company and its competitors.
Is 1812 Brewing Company's Inventory Turnover too high?
1812 Brewing Company's current Inventory Turnover is 0.28.
How does 1812 Brewing Company's Inventory Turnover compare to VCAN and CIIT?
1812 Brewing Company's Inventory Turnover of 0.28 can be compared against companies in the Asset Management 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 an Asset Management company?
A good Inventory Turnover depends on the Asset Management 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 1812 Brewing Company and its competitors. 1812 Brewing Company's current Inventory Turnover is 0.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is 1812 Brewing Company stock overvalued right now?
1812 Brewing Company (KEGS) has a current Inventory Turnover of 0.28. The current Inventory Turnover is 0.28. 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 1812 Brewing Company (KEGS), the current Inventory Turnover is 0.28 as of Jun. 2009. 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.

1812 Brewing Company Business Description

Address 981 Waterman Drive, P.O. Box 6192, Watertown, NY, USA, 13601
1812 Brewing Company Inc is an investment and operating company focused on restaurant operations and beverage production, including beer and other non-alcoholic beverages. The Company is constructing a beverages production plant, in which it intends to produce alcoholic beverages, such as beer, hard seltzer, hard cider, and kombucha, as well as non-alcoholic beverages such as teas and sodas. Its beer products include War of 1812 Amber Ale, Helles Bells, and Route 11 Lager.