Chime Communications (LSE:CHW) Inventory Turnover : 11.67 (As of Jun. 2015)

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What is Chime Communications 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. Chime Communications's Cost of Goods Sold for the six months ended in Jun. 2015 was £81.9 Mil. Chime Communications's Average Total Inventories for the quarter that ended in Jun. 2015 was £7.0 Mil. Chime Communications's Inventory Turnover for the quarter that ended in Jun. 2015 was 11.67.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Chime Communications's Days Inventory for the six months ended in Jun. 2015 was 15.64.

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. Chime Communications's Inventory-to-Revenue for the quarter that ended in Jun. 2015 was 0.04.

Chime Communications Inventory Turnover Historical Data

The historical data trend for Chime Communications'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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Chime Communications Inventory Turnover Chart

Chime Communications Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Inventory Turnover

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46.18

37.39

53.15

23.51

26.40

Chime Communications Semi-Annual Data
	Dec05	Jun06	Dec06	Jun07	Dec07	Jun08	Dec08	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15
Inventory Turnover	Get a 7-Day Free Trial															10.73	7.82	13.63	14.02	11.67

Chime Communications Inventory Turnover Calculation

Chime Communications's Inventory Turnover for the fiscal year that ended in Dec. 2014 is calculated as

	Inventory Turnover (A: Dec. 2014 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2014 )	/ (	(Total Inventories (A: Dec. 2013 )	+	Total Inventories (A: Dec. 2014 ))	/	count )
=	190.203	/ (	(8.196	+	6.216)	/	2 )
=	190.203	/	7.206
=	26.40

Chime Communications's Inventory Turnover for the quarter that ended in Jun. 2015 is calculated as

	Inventory Turnover (Q: Jun. 2015 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jun. 2015 )	/ (	(Total Inventories (Q: Dec. 2014 )	+	Total Inventories (Q: Jun. 2015 ))	/	count )
=	81.854	/ (	(6.216	+	7.814)	/	2 )
=	81.854	/	7.015
=	11.67

Chime Communications (LSE:CHW) 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.

Chime Communications's Days Inventory for the six months ended in Jun. 2015 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jun. 2015 )	/	Cost of Goods Sold (Q: Jun. 2015 )	*	Days in Period
	=	7.015	/	81.854	*	365 / 2
	=	15.64

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.

Chime Communications's Inventory to Revenue for the quarter that ended in Jun. 2015 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jun. 2015 )	/	Revenue (Q: Jun. 2015 )
	=	7.015	/	184.486
	=	0.04

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.

Chime Communications Inventory Turnover Related Terms

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Chime Communications (LSE:CHW) Business Description

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Address

Website

http://www.chimeplc.com

Chime Communications PLC was incorporated in the United Kingdom on January 29, 1986. The Company provides advertising, sports marketing, market research, direct marketing, design and event management consultancy. Its business segments are Sport & Entertainment, Advertising and Marketing Services (AMS), Healthcare, and Insight & Engagement.Â In sport & entertainment segment CSM Sport & Entertainment works with brands, rights holders, governing bodies, governments and athletes across the globe, CSM specialises in strategic consultancy, rights sales, sponsorship activation, hospitality, branding and wayfinding, athlete management and communications across sporting events. The advertising and marketing services division includes the VCCP Partnership and the Chime Specialist Group. VCCP operates in advertising and marketing services, direct marketing, digital communication, search relations, point of sale, sales promotion, data consultancy and technical design, multimedia content, youth marketing and experiential, marketing consulting, retail and shopper marketing and specialist media planning and buying. The Specialist Group includes agencies operating in niche markets; corporate responsibility and sustainability consultancy; for technology brands; providing customer reference and advocacy and; in professional and financial services. The insight and engagement division brings together researchers, technologists and insight specialists who deliver to clients, in real time, actionable solutions. The division has particular expertise in delivering clients in FMCG, financial services, utilities and retail with experience performance improvement plans, mystery shopping programmes and advertising and brand tracking. The Insight & Engagement division includes specialist brands such as Watermelon - a specialist digital agency, Cherry Picked - a specialist recruitment agency, Facts International - a specialist fieldwork agency and full service agencies Opinion Leader and CIE. In healthcare segment OPEN Health is a healthcare communications and market access group. It comprises ten different specialist businesses that bring a breadth of expertise focused principally on pharma, health device and diagnostic clients. OPEN Health's companies cover aspects of the communications mix including advertising, PR, medical communications, market access consulting, real world data collection, market research and patient engagement programmes.