Heritage Oil (LSE:0PZU) Inventory Turnover : 30.02 (As of Dec. 2013)

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What is Heritage Oil 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. Heritage Oil's Cost of Goods Sold for the six months ended in Dec. 2013 was £80.8 Mil. Heritage Oil's Average Total Inventories for the quarter that ended in Dec. 2013 was £2.7 Mil. Heritage Oil's Inventory Turnover for the quarter that ended in Dec. 2013 was 30.02.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Heritage Oil's Days Inventory for the six months ended in Dec. 2013 was 6.08.

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. Heritage Oil's Inventory-to-Revenue for the quarter that ended in Dec. 2013 was 0.01.

Heritage Oil Inventory Turnover Historical Data

The historical data trend for Heritage Oil'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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Heritage Oil Inventory Turnover Chart

Heritage Oil Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Inventory Turnover

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12.58

85.43

89.70

0.92

30.02

Heritage Oil Semi-Annual Data
	Dec97	Dec98	Dec99	Dec00	Dec01	Dec02	Dec03	Dec04	Dec05	Dec06	Dec07	Dec08	Dec09	Dec10	Dec11	Dec12	Dec13
Inventory Turnover	Get a 7-Day Free Trial												12.58	85.43	89.70	0.92	30.02

Heritage Oil Inventory Turnover Calculation

Heritage Oil's Inventory Turnover for the fiscal year that ended in Dec. 2013 is calculated as

	Inventory Turnover (A: Dec. 2013 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2013 )	/ (	(Total Inventories (A: Dec. 2012 )	+	Total Inventories (A: Dec. 2013 ))	/	count )
=	80.775	/ (	(5.194	+	0.187)	/	2 )
=	80.775	/	2.6905
=	30.02

Heritage Oil's Inventory Turnover for the quarter that ended in Dec. 2013 is calculated as

	Inventory Turnover (Q: Dec. 2013 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2013 )	/ (	(Total Inventories (Q: Dec. 2012 )	+	Total Inventories (Q: Dec. 2013 ))	/	count )
=	80.775	/ (	(5.194	+	0.187)	/	2 )
=	80.775	/	2.6905
=	30.02

Heritage Oil (LSE:0PZU) 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.

Heritage Oil's Days Inventory for the six months ended in Dec. 2013 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2013 )	/	Cost of Goods Sold (Q: Dec. 2013 )	*	Days in Period
	=	2.6905	/	80.775	*	365 / 2
	=	6.08

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.

Heritage Oil's Inventory to Revenue for the quarter that ended in Dec. 2013 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2013 )	/	Revenue (Q: Dec. 2013 )
	=	2.6905	/	263.474
	=	0.01

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.

Heritage Oil Inventory Turnover Related Terms

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Heritage Oil (LSE:0PZU) Business Description

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http://www.heritageoilplc.com

Heritage Oil PLC was incorporated under the Jersey Companies Law on 6 February 2008 as Heritage Oil Limited. The Company changed its name to Heritage Oil Plc on 18 June 2009. The Company is an independent international oil and gas company. The Company is engaged in the exploration, development and production of petroleum and natural gas in Africa, the Middle East and Russia. The Company has exploration projects in Nigeria, Russia, Tanzania, Papua New Guinea, Malta, Pakistan and Libya. The Company has producing assets in Nigeria and Russia and exploration assets in Tanzania, Papua New Guinea, Malta, Libya and Pakistan.

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