Valiant Petroleum (LSE:VPP) Inventory Turnover : 5.85 (As of Jun. 2012)

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What is Valiant Petroleum 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. Valiant Petroleum's Cost of Goods Sold for the six months ended in Jun. 2012 was £29.5 Mil. Valiant Petroleum's Average Total Inventories for the quarter that ended in Jun. 2012 was £5.0 Mil. Valiant Petroleum's Inventory Turnover for the quarter that ended in Jun. 2012 was 5.85.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Valiant Petroleum's Days Inventory for the six months ended in Jun. 2012 was 31.20.

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. Valiant Petroleum's Inventory-to-Revenue for the quarter that ended in Jun. 2012 was 0.08.

Valiant Petroleum Inventory Turnover Historical Data

The historical data trend for Valiant Petroleum'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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Valiant Petroleum Inventory Turnover Chart

Valiant Petroleum Annual Data

Trend

Sep06

Sep07

Dec08

Dec09

Dec10

Dec11

Inventory Turnover

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11.90

4.98

6.76

Valiant Petroleum Semi-Annual Data
	Mar08	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12
Inventory Turnover	Get a 7-Day Free Trial			3.63	2.17	2.41	7.59	5.85

Valiant Petroleum Inventory Turnover Calculation

Valiant Petroleum's Inventory Turnover for the fiscal year that ended in Dec. 2011 is calculated as

	Inventory Turnover (A: Dec. 2011 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2011 )	/ (	(Total Inventories (A: Dec. 2010 )	+	Total Inventories (A: Dec. 2011 ))	/	count )
=	92.211	/ (	(22.954	+	4.314)	/	2 )
=	92.211	/	13.634
=	6.76

Valiant Petroleum's Inventory Turnover for the quarter that ended in Jun. 2012 is calculated as

	Inventory Turnover (Q: Jun. 2012 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jun. 2012 )	/ (	(Total Inventories (Q: Dec. 2011 )	+	Total Inventories (Q: Jun. 2012 ))	/	count )
=	29.47	/ (	(4.314	+	5.762)	/	2 )
=	29.47	/	5.038
=	5.85

Valiant Petroleum (LSE:VPP) 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.

Valiant Petroleum's Days Inventory for the six months ended in Jun. 2012 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jun. 2012 )	/	Cost of Goods Sold (Q: Jun. 2012 )	*	Days in Period
	=	5.038	/	29.47	*	365 / 2
	=	31.20

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.

Valiant Petroleum's Inventory to Revenue for the quarter that ended in Jun. 2012 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jun. 2012 )	/	Revenue (Q: Jun. 2012 )
	=	5.038	/	60.546
	=	0.08

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.

Valiant Petroleum Inventory Turnover Related Terms

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Valiant Petroleum (LSE:VPP) Business Description

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