SOLON AG fuer Solartechnik (LTS:0G3C) Inventory Turnover : 1.03 (As of Sep. 2011)

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What is SOLON AG fuer Solartechnik 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. SOLON AG fuer Solartechnik's Cost of Goods Sold for the three months ended in Sep. 2011 was €122.8 Mil. SOLON AG fuer Solartechnik's Average Total Inventories for the quarter that ended in Sep. 2011 was €119.0 Mil. SOLON AG fuer Solartechnik's Inventory Turnover for the quarter that ended in Sep. 2011 was 1.03.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. SOLON AG fuer Solartechnik's Days Inventory for the three months ended in Sep. 2011 was 88.43.

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. SOLON AG fuer Solartechnik's Inventory-to-Revenue for the quarter that ended in Sep. 2011 was 1.10.

SOLON AG fuer Solartechnik Inventory Turnover Historical Data

The historical data trend for SOLON AG fuer Solartechnik'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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SOLON AG fuer Solartechnik Inventory Turnover Chart

SOLON AG fuer Solartechnik Annual Data

Trend

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Inventory Turnover

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4.05

3.21

4.23

2.49

5.20

SOLON AG fuer Solartechnik Quarterly Data
	Dec03	Dec04	Dec05	Dec06	Dec07	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11
Inventory Turnover	Get a 7-Day Free Trial												1.13	1.40	0.77	0.88	1.03

SOLON AG fuer Solartechnik Inventory Turnover Calculation

SOLON AG fuer Solartechnik's Inventory Turnover for the fiscal year that ended in Dec. 2010 is calculated as

	Inventory Turnover (A: Dec. 2010 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2010 )	/ (	(Total Inventories (A: Dec. 2009 )	+	Total Inventories (A: Dec. 2010 ))	/	count )
=	517.629	/ (	(90.631	+	108.438)	/	2 )
=	517.629	/	99.5345
=	5.20

SOLON AG fuer Solartechnik's Inventory Turnover for the quarter that ended in Sep. 2011 is calculated as

	Inventory Turnover (Q: Sep. 2011 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2011 )	/ (	(Total Inventories (Q: Jun. 2011 )	+	Total Inventories (Q: Sep. 2011 ))	/	count )
=	122.804	/ (	(142.03	+	95.984)	/	2 )
=	122.804	/	119.007
=	1.03

SOLON AG fuer Solartechnik (LTS:0G3C) 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.

SOLON AG fuer Solartechnik's Days Inventory for the three months ended in Sep. 2011 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2011 )	/	Cost of Goods Sold (Q: Sep. 2011 )	*	Days in Period
	=	119.007	/	122.804	*	365 / 4
	=	88.43

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.

SOLON AG fuer Solartechnik's Inventory to Revenue for the quarter that ended in Sep. 2011 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2011 )	/	Revenue (Q: Sep. 2011 )
	=	119.007	/	108.304
	=	1.10

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.

SOLON AG fuer Solartechnik Inventory Turnover Related Terms

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SOLON AG fuer Solartechnik (LTS:0G3C) Business Description

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GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » SOLON AG fuer Solartechnik (LTS:0G3C) » Definitions » Inventory Turnover

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Address

3840 South Palo Verde, Suite 205, Tucson, AZ, USA, 85714

Website

http://www.solon.com

SOLON SE is a Germany-based manufacturer of solar modules and supplier of solar system technology. It produces and distributes solar modules, as well monocrystalline and polycrystalline solar cells to wholesalers and installers. It focuses on the construction of turnkey solar power plants on rooftops and on open fields, as well as the distribution of systems to project developers and utility companies.

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