Motive Television (LSE:MTV) Inventory Turnover: 6.67 (As of Jun. 2015)

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What is Motive Television Inventory Turnover?

Motive Television LSE:MTV Inventory Turnover is 6.67 as of Jun. 2015. The stock has 5 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. Motive Television's Cost of Goods Sold for the six months ended in Jun. 2015 was £0.38 Mil. Motive Television's Average Total Inventories for the quarter that ended in Jun. 2015 was £0.06 Mil. Motive Television's Inventory Turnover for the quarter that ended in Jun. 2015 was 6.67.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Motive Television's Days Inventory for the six months ended in Jun. 2015 was 27.38.

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. Motive Television's Inventory-to-Revenue for the quarter that ended in Jun. 2015 was 0.08.

Motive Television  (LSE:MTV) 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.

Motive Television's Days Inventory for the six months ended in Jun. 2015 is calculated as:

Days Inventory =Average Total Inventories (Q: Jun. 2015 )/Cost of Goods Sold (Q: Jun. 2015 )*Days in Period
=0.057/0.38*365 / 2
=27.38

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.

Motive Television's Inventory to Revenue for the quarter that ended in Jun. 2015 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Jun. 2015 ) / Revenue (Q: Jun. 2015 )
=0.057 / 0.673
=0.08

* 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.

Motive Television Inventory Turnover Related Terms

Motive Television Inventory Turnover Historical Data

* Premium members only.

The historical data trend for Motive Television'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.

Motive Television Inventory Turnover Chart

Motive Television Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 511.00 1,271.00 0.00 0.00 31.86

Motive Television Semi-Annual Data
Jun06 Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15
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 0.00 0.00 0.00 17.57 6.67

Motive Television Inventory Turnover Calculation

Motive Television's Inventory Turnover for the fiscal year that ended in Dec. 2014 is calculated as

Inventory Turnover (A: Dec. 2014 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2014 ) / ((Total Inventories (A: Dec. 2013 ) + Total Inventories (A: Dec. 2014 )) / count )
=0.669 / ((0 + 0.021) / 1 )
=0.669 / 0.021
=31.86

Motive Television's Inventory Turnover for the quarter that ended in Jun. 2015 is calculated as

Inventory Turnover (Q: Jun. 2015 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Jun. 2015 ) / ((Total Inventories (Q: Dec. 2014 ) + Total Inventories (Q: Jun. 2015 )) / count )
=0.38 / ((0.021 + 0.093) / 2 )
=0.38 / 0.057
=6.67

* 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 6.67 mean?
Motive Television (LSE:MTV) has a Inventory Turnover of 6.67 as of Jun. 2015. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Motive Television and its competitors.
Is Motive Television's Inventory Turnover too high?
Motive Television's current Inventory Turnover is 6.67.
How does Motive Television's Inventory Turnover compare to competitors?
Motive Television's Inventory Turnover of 6.67 can be compared against companies in the Media - Diversified 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 Media - Diversified company?
A good Inventory Turnover depends on the Media - Diversified 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 Motive Television and its competitors. Motive Television's current Inventory Turnover is 6.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Motive Television stock overvalued right now?
Motive Television (LSE:MTV) has a current Inventory Turnover of 6.67. The current Inventory Turnover is 6.67. 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 Motive Television (LSE:MTV), the current Inventory Turnover is 6.67 as of Jun. 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.

Motive Television Business Description

Motive Television PLC was incorporated in the United Kingdom on December 22, 2004. The Company along with its subsidiaries is engaged in providing software and services to Television Broadcasters. The Company operates in two segments including; Digital Television Technology and Television Production (Content). The Company's solution offering include Content Express and TabletTV enabling TV providers to offer audiences more, giving them a competitive edge and delivering new revenues. The Content Express enables viewers to watch whatever they want, when they want, on any screen without having to build new networks. The Content Express software provides secure delivery and management of non-linear digital content across any type of broadcast network to any consumer-facing screen. It provides one-stop shop for digital terrestrial broadcasters, satellite, DTT, and cable pay television platforms, and Internet OTT content providers to offer new services including Video on Demand, Catch-up television, Tablet Television, Targeted Advertising for VOD, Mocast for 4G LTE, and Virtual channels and Video2Go. The Tablet TV designed to address the U.S. tablet and smartphone market, meeting the demand for watching long-form video on devices.