HiWave Technologies (LSE:HIW) Inventory Turnover : 0.96 (As of Sep. 2012)

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What is HiWave Technologies 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. HiWave Technologies's Cost of Goods Sold for the six months ended in Sep. 2012 was £0.25 Mil. HiWave Technologies's Average Total Inventories for the quarter that ended in Sep. 2012 was £0.26 Mil. HiWave Technologies's Inventory Turnover for the quarter that ended in Sep. 2012 was 0.96.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. HiWave Technologies's Days Inventory for the six months ended in Sep. 2012 was 189.86.

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. HiWave Technologies's Inventory-to-Revenue for the quarter that ended in Sep. 2012 was 0.41.

HiWave Technologies Inventory Turnover Historical Data

The historical data trend for HiWave Technologies'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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HiWave Technologies Inventory Turnover Chart

HiWave Technologies Annual Data

Trend

Jun03

Jun04

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Sep12

Inventory Turnover

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2.27

1.71

HiWave Technologies Semi-Annual Data
	Dec02	Jun03	Dec03	Jun04	Dec04	Jun05	Dec05	Jun06	Dec06	Jun07	Dec07	Jun08	Dec08	Jun09	Dec09	Jun10	Dec10	Jun11	Mar12	Sep12
Inventory Turnover	Get a 7-Day Free Trial															-	1.59	1.09	0.63	0.96

HiWave Technologies Inventory Turnover Calculation

HiWave Technologies's Inventory Turnover for the fiscal year that ended in Sep. 2012 is calculated as

	Inventory Turnover (A: Sep. 2012 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Sep. 2012 )	/ (	(Total Inventories (A: Sep. 2011 )	+	Total Inventories (A: Sep. 2012 ))	/	count )
=	0.421	/ (	(0.267	+	0.224)	/	2 )
=	0.421	/	0.2455
=	1.71

HiWave Technologies's Inventory Turnover for the quarter that ended in Sep. 2012 is calculated as

	Inventory Turnover (Q: Sep. 2012 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2012 )	/ (	(Total Inventories (Q: Mar. 2012 )	+	Total Inventories (Q: Sep. 2012 ))	/	count )
=	0.248	/ (	(0.292	+	0.224)	/	2 )
=	0.248	/	0.258
=	0.96

HiWave Technologies (LSE:HIW) 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.

HiWave Technologies's Days Inventory for the six months ended in Sep. 2012 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2012 )	/	Cost of Goods Sold (Q: Sep. 2012 )	*	Days in Period
	=	0.258	/	0.248	*	365 / 2
	=	189.86

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.

HiWave Technologies's Inventory to Revenue for the quarter that ended in Sep. 2012 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2012 )	/	Revenue (Q: Sep. 2012 )
	=	0.258	/	0.631
	=	0.41

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.

HiWave Technologies Inventory Turnover Related Terms

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