African Copper (LSE:ACU) Inventory Turnover: 2.85 (As of Sep. 2014)

What is African Copper Inventory Turnover?

African Copper LSE:ACU +10.00% Inventory Turnover is 2.85 as of Sep. 2014. The stock has 4 warning signs investors should review.

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. African Copper's Cost of Goods Sold for the six months ended in Sep. 2014 was £13.09 Mil. African Copper's Average Total Inventories for the quarter that ended in Sep. 2014 was £4.59 Mil. African Copper's Inventory Turnover for the quarter that ended in Sep. 2014 was 2.85.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. African Copper's Days Inventory for the six months ended in Sep. 2014 was 64.06.

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. African Copper's Inventory-to-Revenue for the quarter that ended in Sep. 2014 was 0.24.

African Copper (LSE:ACU) 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.

African Copper's Days Inventory for the six months ended in Sep. 2014 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2014 )	/	Cost of Goods Sold (Q: Sep. 2014 )	*	Days in Period
	=	4.593	/	13.085	*	365 / 2
	=	64.06

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.

African Copper's Inventory to Revenue for the quarter that ended in Sep. 2014 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2014 )	/	Revenue (Q: Sep. 2014 )
	=	4.593	/	18.93
	=	0.24

* 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.

African Copper Inventory Turnover Related Terms

African Copper Inventory Turnover Historical Data

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The historical data trend for African Copper's Inventory Turnover can be seen below:

African Copper Inventory Turnover Chart

African Copper Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Mar11

Mar12

Mar13

Mar14

Inventory Turnover

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5.80

4.16

4.53

4.95

4.66

African Copper Semi-Annual Data
	Jun05	Dec05	Jun06	Dec06	Jun07	Dec07	Jun08	Dec08	Jun09	Dec09	Sep10	Mar11	Sep11	Mar12	Sep12	Mar13	Sep13	Mar14	Sep14
Inventory Turnover	Get a 7-Day Free Trial														2.30	2.52	2.33	2.67	2.85

African Copper Inventory Turnover Calculation

African Copper's Inventory Turnover for the fiscal year that ended in Mar. 2014 is calculated as

	Inventory Turnover (A: Mar. 2014 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Mar. 2014 )	/ (	(Total Inventories (A: Mar. 2013 )	+	Total Inventories (A: Mar. 2014 ))	/	count )
=	24.446	/ (	(5.895	+	4.59)	/	2 )
=	24.446	/	5.2425
=	4.66

African Copper's Inventory Turnover for the quarter that ended in Sep. 2014 is calculated as

	Inventory Turnover (Q: Sep. 2014 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2014 )	/ (	(Total Inventories (Q: Mar. 2014 )	+	Total Inventories (Q: Sep. 2014 ))	/	count )
=	13.085	/ (	(4.59	+	4.596)	/	2 )
=	13.085	/	4.593
=	2.85

Frequently Asked Questions Learn more about Inventory Turnover →

What does a Inventory Turnover of 2.85 mean?

African Copper (LSE:ACU) has a Inventory Turnover of 2.85 as of Sep. 2014. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on African Copper and its competitors.

Is African Copper's Inventory Turnover too high?

African Copper's current Inventory Turnover is 2.85.

How does African Copper's Inventory Turnover compare to competitors?

African Copper's Inventory Turnover of 2.85 can be compared against companies in the Metals & Mining 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 Metals & Mining company?

A good Inventory Turnover depends on the Metals & Mining 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 African Copper and its competitors. African Copper's current Inventory Turnover is 2.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is African Copper stock overvalued right now?

African Copper (LSE:ACU) has a current Inventory Turnover of 2.85. The current Inventory Turnover is 2.85. 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 African Copper (LSE:ACU), the current Inventory Turnover is 2.85 as of Sep. 2014. 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.

African Copper Business Description

Industry Basic Materials Metals & Mining

Comparable Companies LTS:0MB2 LSE:ATYM LTS:0K7F LTS:0RQ9 LTS:0P6E LTS:0O8D

Website http://www.africancopper.com

African Copper PLC was incorporated on February 11, 2004 in England and Wales. The Company is engaged in the exploration for, development and mining of, copper deposits in the Republic of Botswana. Its main activity is that of a holding company. Its main project is the copper producing open pit Mowana mine. The Company's wholly-owned subsidiary Messina holds the Dukwe Project comprising exploration licence PL 33/2005, with an area of 139.6 km2. The Dukwe Project with its associated licences encompasses the Mowana Mine and all current estimated mineral resources and reserves associated with the mine; together with north and south extensions of mineralization that lie outside of the Mowana Mine licence area. It also owns the rights to the adjacent Thakadu-Makala deposits and holds permits in exploration properties at the Matsitama Project which is contiguous to the southern boundary of the Mowana Mine.