Norseman Gold (LSE:NGL) Inventory Turnover : 8.82 (As of Jun. 2014)

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What is Norseman Gold 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. Norseman Gold's Cost of Goods Sold for the six months ended in Jun. 2014 was £11.02 Mil. Norseman Gold's Average Total Inventories for the quarter that ended in Jun. 2014 was £1.25 Mil. Norseman Gold's Inventory Turnover for the quarter that ended in Jun. 2014 was 8.82.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Norseman Gold's Days Inventory for the six months ended in Jun. 2014 was 20.69.

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. Norseman Gold's Inventory-to-Revenue for the quarter that ended in Jun. 2014 was 0.10.

Norseman Gold Inventory Turnover Historical Data

The historical data trend for Norseman Gold'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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Norseman Gold Inventory Turnover Chart

Norseman Gold Annual Data

Trend

Jun09

Jun10

Jun11

Jun12

Jun13

Jun14

Inventory Turnover

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9.71

9.39

12.38

15.30

8.82

Norseman Gold Semi-Annual Data
	Jun09	Jun10	Jun11	Jun12	Jun13	Jun14
Inventory Turnover	Get a 7-Day Free Trial			9.71	9.00	18.29	15.30	8.82

Norseman Gold Inventory Turnover Calculation

Norseman Gold's Inventory Turnover for the fiscal year that ended in Jun. 2014 is calculated as

	Inventory Turnover (A: Jun. 2014 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jun. 2014 )	/ (	(Total Inventories (A: Jun. 2013 )	+	Total Inventories (A: Jun. 2014 ))	/	count )
=	11.022	/ (	(1.322	+	1.177)	/	2 )
=	11.022	/	1.2495
=	8.82

Norseman Gold's Inventory Turnover for the quarter that ended in Jun. 2014 is calculated as

	Inventory Turnover (Q: Jun. 2014 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jun. 2014 )	/ (	(Total Inventories (Q: Jun. 2013 )	+	Total Inventories (Q: Jun. 2014 ))	/	count )
=	11.022	/ (	(1.322	+	1.177)	/	2 )
=	11.022	/	1.2495
=	8.82

Norseman Gold (LSE:NGL) 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.

Norseman Gold's Days Inventory for the six months ended in Jun. 2014 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jun. 2014 )	/	Cost of Goods Sold (Q: Jun. 2014 )	*	Days in Period
	=	1.2495	/	11.022	*	365 / 2
	=	20.69

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.

Norseman Gold's Inventory to Revenue for the quarter that ended in Jun. 2014 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jun. 2014 )	/	Revenue (Q: Jun. 2014 )
	=	1.2495	/	12.895
	=	0.10

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.

Norseman Gold Inventory Turnover Related Terms

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Norseman Gold (LSE:NGL) Business Description

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Website

http://www.norsemangoldplc.com

Norseman Gold PLC is engaged in the production, exploration, evaluation and development of mineral resources. It is involved in the operation of Central Norseman Gold Corporation Ltd (the Norseman Project). The Norseman Project is located adjacent to the Norseman township, approximately 725 kilometres east of Perth, Western Australia. Current operations source ore from the Bullen underground mine and the Harlequin underground mine using underground mining methods of airleg up dip room and pillar stoping and long-hole stoping.