Manroy (LSE:MAN) Inventory Turnover : 0.85 (As of Mar. 2014)

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What is Manroy 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. Manroy's Cost of Goods Sold for the six months ended in Mar. 2014 was £2.97 Mil. Manroy's Average Total Inventories for the quarter that ended in Mar. 2014 was £3.48 Mil. Manroy's Inventory Turnover for the quarter that ended in Mar. 2014 was 0.85.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Manroy's Days Inventory for the six months ended in Mar. 2014 was 213.87.

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. Manroy's Inventory-to-Revenue for the quarter that ended in Mar. 2014 was 0.72.

Manroy Inventory Turnover Historical Data

The historical data trend for Manroy'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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Manroy Inventory Turnover Chart

Manroy Annual Data

Trend

Sep09

Sep10

Sep11

Sep12

Sep13

Inventory Turnover

2.38

1.90

2.03

Manroy Semi-Annual Data
	Mar11	Sep11	Mar12	Sep12	Mar13	Sep13	Mar14
Inventory Turnover	Get a 7-Day Free Trial			0.87	0.95	0.87	1.02	0.85

Manroy Inventory Turnover Calculation

Manroy's Inventory Turnover for the fiscal year that ended in Sep. 2013 is calculated as

	Inventory Turnover (A: Sep. 2013 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Sep. 2013 )	/ (	(Total Inventories (A: Sep. 2012 )	+	Total Inventories (A: Sep. 2013 ))	/	count )
=	6.18	/ (	(3.102	+	2.975)	/	2 )
=	6.18	/	3.0385
=	2.03

Manroy's Inventory Turnover for the quarter that ended in Mar. 2014 is calculated as

	Inventory Turnover (Q: Mar. 2014 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2014 )	/ (	(Total Inventories (Q: Sep. 2013 )	+	Total Inventories (Q: Mar. 2014 ))	/	count )
=	2.967	/ (	(2.975	+	3.979)	/	2 )
=	2.967	/	3.477
=	0.85

Manroy (LSE:MAN) 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.

Manroy's Days Inventory for the six months ended in Mar. 2014 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2014 )	/	Cost of Goods Sold (Q: Mar. 2014 )	*	Days in Period
	=	3.477	/	2.967	*	365 / 2
	=	213.87

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.

Manroy's Inventory to Revenue for the quarter that ended in Mar. 2014 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2014 )	/	Revenue (Q: Mar. 2014 )
	=	3.477	/	4.842
	=	0.72

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.

Manroy Inventory Turnover Related Terms

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Manroy (LSE:MAN) Business Description

Industry

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Address

Website

http://www.manroy.com

Manroy PLC designs, manufactures, supplies and supports machine guns, mounts and associated products, including the 12.7mm M2 HMG and the 7.62mm General Purpose Machine Gun, M16, M4 and M5 weapons, Quick Change Barrel kits as well as weapon tripods and mounting systems. Its flagship product is the M2 HMG, which it has supplied to the MoD for approximately 26 years.