Hoganas AB (LTS:0GMD) Inventory Turnover : 0.76 (As of Jun. 2013)

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What is Hoganas AB 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. Hoganas AB's Cost of Goods Sold for the three months ended in Jun. 2013 was kr1,183 Mil. Hoganas AB's Average Total Inventories for the quarter that ended in Jun. 2013 was kr1,557 Mil. Hoganas AB's Inventory Turnover for the quarter that ended in Jun. 2013 was 0.76.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Hoganas AB's Days Inventory for the three months ended in Jun. 2013 was 120.10.

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. Hoganas AB's Inventory-to-Revenue for the quarter that ended in Jun. 2013 was 0.94.

Hoganas AB Inventory Turnover Historical Data

The historical data trend for Hoganas AB'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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Hoganas AB Inventory Turnover Chart

Hoganas AB Annual Data

Trend

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Inventory Turnover

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3.64

2.74

3.53

3.23

3.10

Hoganas AB Quarterly Data
	Dec07	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13
Inventory Turnover	Get a 7-Day Free Trial															0.79	0.71	0.71	0.73	0.76

Hoganas AB Inventory Turnover Calculation

Hoganas AB's Inventory Turnover for the fiscal year that ended in Dec. 2012 is calculated as

	Inventory Turnover (A: Dec. 2012 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2012 )	/ (	(Total Inventories (A: Dec. 2011 )	+	Total Inventories (A: Dec. 2012 ))	/	count )
=	5061	/ (	(1701	+	1564)	/	2 )
=	5061	/	1632.5
=	3.10

Hoganas AB's Inventory Turnover for the quarter that ended in Jun. 2013 is calculated as

	Inventory Turnover (Q: Jun. 2013 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jun. 2013 )	/ (	(Total Inventories (Q: Mar. 2013 )	+	Total Inventories (Q: Jun. 2013 ))	/	count )
=	1183	/ (	(1527	+	1587)	/	2 )
=	1183	/	1557
=	0.76

Hoganas AB (LTS:0GMD) 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.

Hoganas AB's Days Inventory for the three months ended in Jun. 2013 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jun. 2013 )	/	Cost of Goods Sold (Q: Jun. 2013 )	*	Days in Period
	=	1557	/	1183	*	365 / 4
	=	120.10

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.

Hoganas AB's Inventory to Revenue for the quarter that ended in Jun. 2013 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jun. 2013 )	/	Revenue (Q: Jun. 2013 )
	=	1557	/	1652
	=	0.94

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.

Hoganas AB Inventory Turnover Related Terms

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Hoganas AB (LTS:0GMD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Hoganas AB (LTS:0GMD) » Definitions » Inventory Turnover

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Address

Website

http://www.hoganas.com

HÃ¶ganÃ¤s AB develops, manufactures and markets metal powders and metal powder technology. Metal powders are used in iron fortification, printing, surface coating, welding, friction materials, chemical and metallurgical processes & soft magnetic composites.

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