Avanti Communications Group (LSE:AVN) Inventory Turnover: 0.99 (As of Jun. 2020)


What is Avanti Communications Group Inventory Turnover?

Avanti Communications Group LSE:AVN -87.07% Inventory Turnover is 0.99 as of Jun. 2020. The stock has 7 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. Avanti Communications Group's Cost of Goods Sold for the six months ended in Jun. 2020 was £15.42 Mil. Avanti Communications Group's Average Total Inventories for the quarter that ended in Jun. 2020 was £15.61 Mil. Avanti Communications Group's Inventory Turnover for the quarter that ended in Jun. 2020 was 0.99.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Avanti Communications Group's Days Inventory for the six months ended in Jun. 2020 was 184.71.

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. Avanti Communications Group's Inventory-to-Revenue for the quarter that ended in Jun. 2020 was 0.61.

Avanti Communications Group  (LSE:AVN) 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.

Avanti Communications Group's Days Inventory for the six months ended in Jun. 2020 is calculated as:

Days Inventory =Average Total Inventories (Q: Jun. 2020 )/Cost of Goods Sold (Q: Jun. 2020 )*Days in Period
=15.6075/15.421*365 / 2
=184.71

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.

Avanti Communications Group's Inventory to Revenue for the quarter that ended in Jun. 2020 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Jun. 2020 ) / Revenue (Q: Jun. 2020 )
=15.6075 / 25.568
=0.61

* 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.

Avanti Communications Group Inventory Turnover Related Terms

Avanti Communications Group Inventory Turnover Historical Data

* Premium members only.

The historical data trend for Avanti Communications 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.

Avanti Communications Group Inventory Turnover Chart

Avanti Communications Group Annual Data
Trend Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Dec19
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 26.18 18.25 19.15 28.10 2.59

Avanti Communications Group Semi-Annual Data
Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Jun19 Dec19 Jun20
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 1.56 0.40 0.78 0.74 0.99

Avanti Communications Group Inventory Turnover Calculation

Avanti Communications Group's Inventory Turnover for the fiscal year that ended in Dec. 2019 is calculated as

Inventory Turnover (A: Dec. 2019 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2019 ) / ((Total Inventories (A: Jun. 2017 ) + Total Inventories (A: Dec. 2019 )) / count )
=23.043 / ((2.031 + 15.794) / 2 )
=23.043 / 8.9125
=2.59

Avanti Communications Group's Inventory Turnover for the quarter that ended in Jun. 2020 is calculated as

Inventory Turnover (Q: Jun. 2020 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Jun. 2020 ) / ((Total Inventories (Q: Dec. 2019 ) + Total Inventories (Q: Jun. 2020 )) / count )
=15.421 / ((15.794 + 15.421) / 2 )
=15.421 / 15.6075
=0.99

* 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 0.99 mean?
Avanti Communications Group (LSE:AVN) has a Inventory Turnover of 0.99 as of Jun. 2020. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Avanti Communications Group and its competitors.
Is Avanti Communications Group's Inventory Turnover too high?
Avanti Communications Group's current Inventory Turnover is 0.99.
How does Avanti Communications Group's Inventory Turnover compare to FNGR and FTRCQ?
Avanti Communications Group's Inventory Turnover of 0.99 can be compared against companies in the Telecommunication Services 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 Telecommunication Services company?
A good Inventory Turnover depends on the Telecommunication Services 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 Avanti Communications Group and its competitors. Avanti Communications Group's current Inventory Turnover is 0.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avanti Communications Group stock overvalued right now?
Avanti Communications Group (LSE:AVN) has a current Inventory Turnover of 0.99. The current Inventory Turnover is 0.99. 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 Avanti Communications Group (LSE:AVN), the current Inventory Turnover is 0.99 as of Jun. 2020. 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.

Avanti Communications Group Business Description

Address 20 Black Friars Lane, Cobham House, London, GBR, EC4V 6EB
Avanti Communications Group PLC sells managed satellite data communications products to service providers on a wholesale basis. It uses the high-frequency Ka-band spectrum. The company's operating segments include Bandwidth and services, and Equipment. Its network can provide download speeds of up to 380Mbps. The company generates its revenues from the utilisation of its space assets, namely its spectrum rights and satellites. These assets include its spectrum rights, satellites, intellectual property, and ground station assets. It serves customers across Europe, the Middle East, and Africa.