Empresa Siderurgica del PeruA (LIM:SIDERC1) Inventory Turnover: 3.33 (As of Dec. 2016)

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What is Empresa Siderurgica del PeruA Inventory Turnover?

Empresa Siderurgica del PeruA LIM:SIDERC1 +1.29% Inventory Turnover is 3.33 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. Empresa Siderurgica del PeruA's Cost of Goods Sold for the six months ended in Dec. 2016 was S/.1,268 Mil. Empresa Siderurgica del PeruA's Average Total Inventories for the quarter that ended in Dec. 2016 was S/.381 Mil. Empresa Siderurgica del PeruA's Inventory Turnover for the quarter that ended in Dec. 2016 was 3.33.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Empresa Siderurgica del PeruA's Days Inventory for the six months ended in Dec. 2016 was 54.77.

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. Empresa Siderurgica del PeruA's Inventory-to-Revenue for the quarter that ended in Dec. 2016 was 0.26.

Empresa Siderurgica del PeruA  (LIM:SIDERC1) 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.

Empresa Siderurgica del PeruA's Days Inventory for the six 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
=380.604/1268.306*365 / 2
=54.77

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.

Empresa Siderurgica del PeruA'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 )
=380.604 / 1437.931
=0.26

* 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.

Empresa Siderurgica del PeruA Inventory Turnover Related Terms

Empresa Siderurgica del PeruA Inventory Turnover Historical Data

* Premium members only.

The historical data trend for Empresa Siderurgica del PeruA'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.

Empresa Siderurgica del PeruA Inventory Turnover Chart

Empresa Siderurgica del PeruA Annual Data
Trend Dec08 Dec09 Dec10 Dec14 Dec15 Dec16
Inventory Turnover
Get a 7-Day Free Trial 1.52 1.85 2.76 3.36 3.33

Empresa Siderurgica del PeruA Semi-Annual Data
Dec08 Dec09 Dec10 Dec14 Dec15 Dec16
Inventory Turnover Get a 7-Day Free Trial 1.52 1.85 2.76 3.36 3.33

Empresa Siderurgica del PeruA Inventory Turnover Calculation

Empresa Siderurgica del PeruA'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 )
=1268.306 / ((383.387 + 377.821) / 2 )
=1268.306 / 380.604
=3.33

Empresa Siderurgica del PeruA'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: Dec. 2015 ) + Total Inventories (Q: Dec. 2016 )) / count )
=1268.306 / ((383.387 + 377.821) / 2 )
=1268.306 / 380.604
=3.33

* 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 3.33 mean?
Empresa Siderurgica del PeruA (LIM:SIDERC1) has a Inventory Turnover of 3.33 as of Dec. 2016. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Empresa Siderurgica del PeruA and its competitors.
Is Empresa Siderurgica del PeruA's Inventory Turnover too high?
Empresa Siderurgica del PeruA's current Inventory Turnover is 3.33.
How does Empresa Siderurgica del PeruA's Inventory Turnover compare to competitors?
Empresa Siderurgica del PeruA's Inventory Turnover of 3.33 can be compared against companies in the Steel 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 Steel company?
A good Inventory Turnover depends on the Steel 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 Empresa Siderurgica del PeruA and its competitors. Empresa Siderurgica del PeruA's current Inventory Turnover is 3.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Empresa Siderurgica del PeruA stock overvalued right now?
Empresa Siderurgica del PeruA (LIM:SIDERC1) has a current Inventory Turnover of 3.33. The current Inventory Turnover is 3.33. 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 Empresa Siderurgica del PeruA (LIM:SIDERC1), the current Inventory Turnover is 3.33 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.

Empresa Siderurgica del PeruA Business Description

Address Avenue Juan de Arona 151, Tower B, Floor 5, Lima, PER
Empresa Siderurgica del Peru SAA is a steel manufacturing company. The company produces long steel designed for the construction and mining industry. The company provides long, flat, tubular, and road products.