Gemfields (LSE:GEMA) Inventory Turnover: 0.40 (As of Dec. 2016)

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What is Gemfields Inventory Turnover?

Gemfields LSE:GEMA Inventory Turnover is 0.40 as of Dec. 2016. 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. Gemfields's Cost of Goods Sold for the six months ended in Dec. 2016 was £33.88 Mil. Gemfields's Average Total Inventories for the quarter that ended in Dec. 2016 was £84.20 Mil. Gemfields's Inventory Turnover for the quarter that ended in Dec. 2016 was 0.40.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Gemfields's Days Inventory for the six months ended in Dec. 2016 was 453.56.

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. Gemfields's Inventory-to-Revenue for the quarter that ended in Dec. 2016 was 2.06.

Gemfields (LSE:GEMA) 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.

Gemfields's Days Inventory for the six months ended in Dec. 2016 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2016 )	/	Cost of Goods Sold (Q: Dec. 2016 )	*	Days in Period
	=	84.195	/	33.878	*	365 / 2
	=	453.56

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.

Gemfields's Inventory to Revenue for the quarter that ended in Dec. 2016 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2016 )	/	Revenue (Q: Dec. 2016 )
	=	84.195	/	40.888
	=	2.06

* 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.

Gemfields Inventory Turnover Related Terms

Gemfields Inventory Turnover Historical Data

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

Gemfields Inventory Turnover Chart

Gemfields Annual Data

Trend

Jun07

Jun08

Jun09

Jun10

Jun11

Jun12

Jun13

Jun14

Jun15

Jun16

Inventory Turnover

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0.93

0.66

0.86

0.93

0.95

Gemfields Semi-Annual Data
	Jun07	Dec07	Jun08	Dec08	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16
Inventory Turnover	Get a 7-Day Free Trial															0.39	0.49	0.45	0.47	0.40

Gemfields Inventory Turnover Calculation

Gemfields's Inventory Turnover for the fiscal year that ended in Jun. 2016 is calculated as

	Inventory Turnover (A: Jun. 2016 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jun. 2016 )	/ (	(Total Inventories (A: Jun. 2015 )	+	Total Inventories (A: Jun. 2016 ))	/	count )
=	69.575	/ (	(67.326	+	78.808)	/	2 )
=	69.575	/	73.067
=	0.95

Gemfields's Inventory Turnover for the quarter that ended in Dec. 2016 is calculated as

	Inventory Turnover (Q: Dec. 2016 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2016 )	/ (	(Total Inventories (Q: Jun. 2016 )	+	Total Inventories (Q: Dec. 2016 ))	/	count )
=	33.878	/ (	(78.808	+	89.582)	/	2 )
=	33.878	/	84.195
=	0.40

Frequently Asked Questions Learn more about Inventory Turnover →

What does a Inventory Turnover of 0.40 mean?

Gemfields (LSE:GEMA) has a Inventory Turnover of 0.40 as of Dec. 2016. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Gemfields and its competitors.

Is Gemfields' Inventory Turnover too high?

Gemfields' current Inventory Turnover is 0.40.

How does Gemfields' Inventory Turnover compare to competitors?

Gemfields' Inventory Turnover of 0.40 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 Gemfields and its competitors. Gemfields's current Inventory Turnover is 0.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Gemfields stock overvalued right now?

Gemfields (LSE:GEMA) has a current Inventory Turnover of 0.40. The current Inventory Turnover is 0.40. 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 Gemfields (LSE:GEMA), the current Inventory Turnover is 0.40 as of Dec. 2016. 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.

Gemfields Business Description

Industry Basic Materials Metals & Mining

Comparable Companies TSX:MPVD TSX:LUC TSXV:GBU LSE:EUA TSXV:MTA LSE:SLP JSE:GML PHS:APX TSX:CGG TSXV:CKG LSE:GEMD LSE:PDL TSX:GGD TSX:DIAM TSXV:ITR TSXV:ARU TSX:PTM ASX:NWF ASX:BOC OHEL:SOSI1

Address St Julian’s Avenue, Royal Chambers, PO Box 186, Saint Peter Port, GGY, W1S 2HR

Website http://www.gemfields.co.uk

Gemfields PLC is a supplier of colored gemstones specializing in emeralds and amethysts from Zambia and rubies from Mozambique. The company's assets include Kagem emerald mine, Montepuez ruby mine, Kariba amethyst mine, Faberge, and it also has emerald, sapphire and ruby exploration projects at Colombia, Ethiopia, Sri Lanka, and Madagascar. Its segments consist of Zambia, Mozambique, United Kingdom, Faberge, and others. The company earns the majority of the revenue from the sale of rough and cut and polished gemstones as well as wholesale and retail sales of the gemstones and jewelry in the Faberge business.