Lombard Medical Technologies (LSE:LMT) Inventory Turnover : 1.27 (As of Dec. 2012)

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What is Lombard Medical 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. Lombard Medical Technologies's Cost of Goods Sold for the six months ended in Dec. 2012 was £2.49 Mil. Lombard Medical Technologies's Average Total Inventories for the quarter that ended in Dec. 2012 was £2.13 Mil. Lombard Medical Technologies's Inventory Turnover for the quarter that ended in Dec. 2012 was 1.27.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Lombard Medical Technologies's Days Inventory for the six months ended in Dec. 2012 was 156.30.

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. Lombard Medical Technologies's Inventory-to-Revenue for the quarter that ended in Dec. 2012 was 0.55.

Lombard Medical Technologies Inventory Turnover Historical Data

The historical data trend for Lombard Medical 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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Lombard Medical Technologies Inventory Turnover Chart

Lombard Medical Technologies Annual Data

Trend

Sep02

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Inventory Turnover

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0.93

1.03

1.02

1.17

Lombard Medical Technologies Semi-Annual Data
	Sep02	Dec04	Dec05	Dec06	Dec07	Dec08	Dec09	Dec10	Dec11	Dec12
Inventory Turnover	Get a 7-Day Free Trial					0.74	0.94	0.96	0.88	1.27

Lombard Medical Technologies Inventory Turnover Calculation

Lombard Medical Technologies's Inventory Turnover for the fiscal year that ended in Dec. 2012 is calculated as

	Inventory Turnover (A: Dec. 2012 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2012 )	/ (	(Total Inventories (A: Dec. 2011 )	+	Total Inventories (A: Dec. 2012 ))	/	count )
=	2.49	/ (	(2.305	+	1.96)	/	2 )
=	2.49	/	2.1325
=	1.17

Lombard Medical Technologies's Inventory Turnover for the quarter that ended in Dec. 2012 is calculated as

	Inventory Turnover (Q: Dec. 2012 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2012 )	/ (	(Total Inventories (Q: Dec. 2011 )	+	Total Inventories (Q: Dec. 2012 ))	/	count )
=	2.49	/ (	(2.305	+	1.96)	/	2 )
=	2.49	/	2.1325
=	1.17

Lombard Medical Technologies (LSE:LMT) 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.

Lombard Medical Technologies's Days Inventory for the six months ended in Dec. 2012 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2012 )	/	Cost of Goods Sold (Q: Dec. 2012 )	*	Days in Period
	=	2.1325	/	2.49	*	365 / 2
	=	156.30

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.

Lombard Medical Technologies's Inventory to Revenue for the quarter that ended in Dec. 2012 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2012 )	/	Revenue (Q: Dec. 2012 )
	=	2.1325	/	3.89
	=	0.55

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.

Lombard Medical Technologies Inventory Turnover Related Terms

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Lombard Medical Technologies (LSE:LMT) Business Description

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http://www.lombardmedical.com

Lombard Medical Technologies PLC is engaged in the design and development of endovascular stent grafts, their manufacture, and commercialization either directly through the group's own sales force or through a network of local distributors supported by clinical specialists from Lombard Medical. The principal product, the AorfixT AAA stent graft has European CE mark approval for use in patients with high-angle-neck aneurysms of up to 90 degrees. The group has operations in United Kingdom and United States of America.