API Group (LSE:APIA) Inventory Turnover : 3.40 (As of Sep. 2014)

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What is API Group 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. API Group's Cost of Goods Sold for the six months ended in Sep. 2014 was £43.71 Mil. API Group's Average Total Inventories for the quarter that ended in Sep. 2014 was £12.86 Mil. API Group's Inventory Turnover for the quarter that ended in Sep. 2014 was 3.40.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. API Group's Days Inventory for the six months ended in Sep. 2014 was 53.69.

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. API Group's Inventory-to-Revenue for the quarter that ended in Sep. 2014 was 0.23.

API Group Inventory Turnover Historical Data

The historical data trend for API Group'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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API Group Inventory Turnover Chart

API Group Annual Data

Trend

Sep04

Sep05

Sep06

Mar08

Mar09

Mar10

Mar11

Mar12

Mar13

Mar14

Inventory Turnover

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4.69

5.99

7.07

6.71

6.93

API Group Semi-Annual Data
	Sep04	Mar05	Sep05	Mar06	Sep06	Mar07	Sep07	Sep08	Mar09	Sep09	Mar10	Sep10	Mar11	Sep11	Mar12	Sep12	Mar13	Sep13	Mar14	Sep14
Inventory Turnover	Get a 7-Day Free Trial															3.48	3.14	3.31	3.51	3.40

API Group Inventory Turnover Calculation

API Group'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 )
=	86.617	/ (	(12.864	+	12.126)	/	2 )
=	86.617	/	12.495
=	6.93

API Group'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 )
=	43.711	/ (	(12.126	+	13.594)	/	2 )
=	43.711	/	12.86
=	3.40

API Group (LSE:APIA) 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.

API Group'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
	=	12.86	/	43.711	*	365 / 2
	=	53.69

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.

API Group'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 )
	=	12.86	/	56.374
	=	0.23

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.

API Group Inventory Turnover Related Terms

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API Group (LSE:APIA) Business Description

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GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Packaging & Containers » API Group PLC (LSE:APIA) » Definitions » Inventory Turnover

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Address

Website

http://www.apigroup.com

API Group PLC is a manufacturer and distributor of foils, laminates and holographic materials. The firm offers metalized film laminates, holographic laminates, aluminum foil laminates, metallic hot stamping foils, cold foils, and custom holograms. The company segmented its operating activities into following reportable segments: Laminates, Foils Europe, Foils Americas, and Holographic. Its primary geographic markets are the United Kingdom, Rest of Europe, Americas, Asia Pacific, and Africa. The company serves clients in various industries including food and confectionery; wines, beers, and spirits; tobacco; cosmetics and perfumes; home and household care, among others.

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