Sphere Medical Holding (LSE:SPHR) Inventory Turnover : 0.04 (As of Dec. 2016)

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What is Sphere Medical Holding 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. Sphere Medical Holding's Cost of Goods Sold for the six months ended in Dec. 2016 was £0.02 Mil. Sphere Medical Holding's Average Total Inventories for the quarter that ended in Dec. 2016 was £0.43 Mil. Sphere Medical Holding's Inventory Turnover for the quarter that ended in Dec. 2016 was 0.04.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Sphere Medical Holding's Days Inventory for the six months ended in Dec. 2016 was 4,616.18.

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. Sphere Medical Holding's Inventory-to-Revenue for the quarter that ended in Dec. 2016 was 17.92.

Sphere Medical Holding Inventory Turnover Historical Data

The historical data trend for Sphere Medical Holding'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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Sphere Medical Holding Inventory Turnover Chart

Sphere Medical Holding Annual Data

Trend

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Inventory Turnover

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0.64

0.30

0.03

0.01

0.05

Sphere Medical Holding Semi-Annual Data
	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16
Inventory Turnover	Get a 7-Day Free Trial						0.02	-	0.01	0.01	0.04

Sphere Medical Holding Inventory Turnover Calculation

Sphere Medical Holding's Inventory Turnover for the fiscal year that ended in Dec. 2016 is calculated as

	Inventory Turnover (A: Dec. 2016 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2016 )	/ (	(Total Inventories (A: Dec. 2015 )	+	Total Inventories (A: Dec. 2016 ))	/	count )
=	0.02	/ (	(0.384	+	0.427)	/	2 )
=	0.02	/	0.4055
=	0.05

Sphere Medical Holding's Inventory Turnover for the quarter that ended in Dec. 2016 is calculated as

	Inventory Turnover (Q: Dec. 2016 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2016 )	/ (	(Total Inventories (Q: Jun. 2016 )	+	Total Inventories (Q: Dec. 2016 ))	/	count )
=	0.017	/ (	(0.433	+	0.427)	/	2 )
=	0.017	/	0.43
=	0.04

Sphere Medical Holding (LSE:SPHR) 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.

Sphere Medical Holding's Days Inventory for the six months ended in Dec. 2016 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2016 )	/	Cost of Goods Sold (Q: Dec. 2016 )	*	Days in Period
	=	0.43	/	0.017	*	365 / 2
	=	4,616.18

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.

Sphere Medical Holding's Inventory to Revenue for the quarter that ended in Dec. 2016 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2016 )	/	Revenue (Q: Dec. 2016 )
	=	0.43	/	0.024
	=	17.92

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.

Sphere Medical Holding Inventory Turnover Related Terms

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Sphere Medical Holding (LSE:SPHR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Sphere Medical Holding PLC (LSE:SPHR) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

Harston Mill, Harston, Cambridge, GBR, CB22 7GG

Website

http://www.spheremedical.com

Sphere Medical Holding Ltd is a UK-based company which is engaged in research and development, manufacturing and sale of medical monitoring and diagnostic equipment within the medical device area. It focuses on developing the Proxima platform for measuring blood gases, electrolytes and metabolites. Proxima is an in-line patient dedicated arterial blood analyser which supports frequent measurements at critical times. It markets its product (Proxima) to critical care market which includes ICU (Intensive Care Unit) and OR (Operating Room). The company's products are used in medical applications, enabling faster clinical decision-making and improved patient outcomes. It operates is business in single reporting segment of Medical devices. Most of the company's revenue comes from Europe.