DRS Data & Research Services (LSE:DRSA) Inventory Turnover: 3.40 (As of Dec. 2015)


What is DRS Data & Research Services Inventory Turnover?

DRS Data & Research Services LSE:DRSA Inventory Turnover is 3.40 as of Dec. 2015. 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. DRS Data & Research Services's Cost of Goods Sold for the six months ended in Dec. 2015 was £4.88 Mil. DRS Data & Research Services's Average Total Inventories for the quarter that ended in Dec. 2015 was £1.44 Mil. DRS Data & Research Services's Inventory Turnover for the quarter that ended in Dec. 2015 was 3.40.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. DRS Data & Research Services's Days Inventory for the six months ended in Dec. 2015 was 53.73.

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. DRS Data & Research Services's Inventory-to-Revenue for the quarter that ended in Dec. 2015 was 0.16.

DRS Data & Research Services  (LSE:DRSA) 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.

DRS Data & Research Services's Days Inventory for the six months ended in Dec. 2015 is calculated as:

Days Inventory =Average Total Inventories (Q: Dec. 2015 )/Cost of Goods Sold (Q: Dec. 2015 )*Days in Period
=1.4365/4.879*365 / 2
=53.73

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.

DRS Data & Research Services's Inventory to Revenue for the quarter that ended in Dec. 2015 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Dec. 2015 ) / Revenue (Q: Dec. 2015 )
=1.4365 / 8.923
=0.16

* 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.

DRS Data & Research Services Inventory Turnover Related Terms

DRS Data & Research Services Inventory Turnover Historical Data

* Premium members only.

The historical data trend for DRS Data & Research Services'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.

DRS Data & Research Services Inventory Turnover Chart

DRS Data & Research Services Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.08 6.71 9.35 12.24 5.40

DRS Data & Research Services Semi-Annual Data
Jun06 Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15
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 6.03 5.27 7.23 5.62 3.40

DRS Data & Research Services Inventory Turnover Calculation

DRS Data & Research Services's Inventory Turnover for the fiscal year that ended in Dec. 2015 is calculated as

Inventory Turnover (A: Dec. 2015 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2015 ) / ((Total Inventories (A: Dec. 2014 ) + Total Inventories (A: Dec. 2015 )) / count )
=8.075 / ((0.629 + 2.364) / 2 )
=8.075 / 1.4965
=5.40

DRS Data & Research Services's Inventory Turnover for the quarter that ended in Dec. 2015 is calculated as

Inventory Turnover (Q: Dec. 2015 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Dec. 2015 ) / ((Total Inventories (Q: Jun. 2015 ) + Total Inventories (Q: Dec. 2015 )) / count )
=4.879 / ((0.509 + 2.364) / 2 )
=4.879 / 1.4365
=3.40

* 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 3.40 mean?
DRS Data & Research Services (LSE:DRSA) has a Inventory Turnover of 3.40 as of Dec. 2015. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on DRS Data & Research Services and its competitors.
Is DRS Data & Research Services' Inventory Turnover too high?
DRS Data & Research Services' current Inventory Turnover is 3.40.
How does DRS Data & Research Services' Inventory Turnover compare to competitors?
DRS Data & Research Services' Inventory Turnover of 3.40 can be compared against companies in the Business 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 Business Services company?
A good Inventory Turnover depends on the Business 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 DRS Data & Research Services and its competitors. DRS Data & Research Services's current Inventory Turnover is 3.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DRS Data & Research Services stock overvalued right now?
DRS Data & Research Services (LSE:DRSA) has a current Inventory Turnover of 3.40. The current Inventory Turnover is 3.40. 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 DRS Data & Research Services (LSE:DRSA), the current Inventory Turnover is 3.40 as of Dec. 2015. 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.

DRS Data & Research Services Business Description

DRS Data & Research Services PLC was incorporated on August 1, 1969. The Company is engaged in the provision of data capture services, the manufacture, sale and support of optical and image scanning equipment, design and printing of documentation used for data capture and associated software and bureau services.