Acino Holding AG (LTS:0QM8) Inventory Turnover: 1.47 (As of Dec. 2013)

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What is Acino Holding AG Inventory Turnover?

Acino Holding AG LTS:0QM8 Inventory Turnover is 1.47 as of Dec. 2013.

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. Acino Holding AG's Cost of Goods Sold for the six months ended in Dec. 2013 was CHF106.02 Mil. Acino Holding AG's Average Total Inventories for the quarter that ended in Dec. 2013 was CHF71.94 Mil. Acino Holding AG's Inventory Turnover for the quarter that ended in Dec. 2013 was 1.47.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Acino Holding AG's Days Inventory for the six months ended in Dec. 2013 was 123.83.

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. Acino Holding AG's Inventory-to-Revenue for the quarter that ended in Dec. 2013 was 0.22.


Acino Holding AG  (LTS:0QM8) 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.

Acino Holding AG's Days Inventory for the six months ended in Dec. 2013 is calculated as:

Days Inventory =Average Total Inventories (Q: Dec. 2013 )/Cost of Goods Sold (Q: Dec. 2013 )*Days in Period
=71.937/106.021*365 / 2
=123.83

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.

Acino Holding AG's Inventory to Revenue for the quarter that ended in Dec. 2013 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Dec. 2013 ) / Revenue (Q: Dec. 2013 )
=71.937 / 321.15
=0.22

* 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.


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.


Acino Holding AG Inventory Turnover Related Terms


Acino Holding AG Inventory Turnover Historical Data

* Premium members only.

The historical data trend for Acino Holding AG'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.

Acino Holding AG Inventory Turnover Chart

Acino Holding AG Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.29 2.41 2.04 2.15 1.47

Acino Holding AG Semi-Annual Data
Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Inventory Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only 2.29 2.41 2.04 2.15 1.47

Acino Holding AG Inventory Turnover Calculation

Acino Holding AG's Inventory Turnover for the fiscal year that ended in Dec. 2013 is calculated as

Inventory Turnover (A: Dec. 2013 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2013 ) / ((Total Inventories (A: Dec. 2012 ) + Total Inventories (A: Dec. 2013 )) / count )
=106.021 / ((74.839 + 69.035) / 2 )
=106.021 / 71.937
=1.47

Acino Holding AG's Inventory Turnover for the quarter that ended in Dec. 2013 is calculated as

Inventory Turnover (Q: Dec. 2013 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Dec. 2013 ) / ((Total Inventories (Q: Dec. 2012 ) + Total Inventories (Q: Dec. 2013 )) / count )
=106.021 / ((74.839 + 69.035) / 2 )
=106.021 / 71.937
=1.47

* 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.

Frequently Asked Questions Learn more about Inventory Turnover →
What does a Inventory Turnover of 1.47 mean?
Acino Holding AG (LTS:0QM8) has a Inventory Turnover of 1.47 as of Dec. 2013. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Acino Holding AG and its competitors.
Is Acino Holding AG's Inventory Turnover too high?
Acino Holding AG's current Inventory Turnover is 1.47.
How does Acino Holding AG's Inventory Turnover compare to competitors?
Acino Holding AG's Inventory Turnover of 1.47 can be compared against companies in the Drug Manufacturers industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Inventory Turnover for a Drug Manufacturers company?
A good Inventory Turnover depends on the Drug Manufacturers industry context. However, Inventory Turnover should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Inventory Turnover mean?
A high Inventory Turnover can signal that a stock is expensive relative to its fundamentals. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Acino Holding AG and its competitors. Acino Holding AG's current Inventory Turnover is 1.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Acino Holding AG stock overvalued right now?
Acino Holding AG (LTS:0QM8) has a current Inventory Turnover of 1.47. The current Inventory Turnover is 1.47. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Inventory Turnover calculated?
Inventory Turnover is calculated from a company's financial statements. For Acino Holding AG (LTS:0QM8), the current Inventory Turnover is 1.47 as of Dec. 2013. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Acino Holding AG Business Description

Acino Holding AG is a Switzerland-based company engaged in the pharmaceutical industry. The Company develops, manufactures, and markets pharmaceuticals in novel drug delivery forms internationally. It is divided into four segments Business to Consumer (BtC); Business to Business (BtB); Technology marketing (TM); and Production (Prod). The BtC segment comprises all direct marketing activities. Under the company's "Acino Switzerland" brand and, with the promise of Swiss quality, the company sells its products in emerging markets around the globe. This reporting segment includes the business purchased from Mepha/Cephalon in the Middle East, Africa, Latin America and Asia. The BtB segment comprises Acino's business with its internally developed products, for which the company also owns the intellectual property rights. Acino develops and produces high-quality medicines with proven active ingredients and modern drug delivery systems and grants licenses for them to leading pharmaceutical and generic pharmaceutical companies worldwide. The technology marketing segment comprises a broad spectrum of fully integrated contract services, including procurement, contract development, production and packaging for companies in the life sciences industry. On behalf of these customers, Acino develops a comprehensive product pipeline on the basis of its special technological know-how. This includes both new types of medicines as well as projects with innovative drug delivery systems for established active ingredients. The production segment is responsible for the manufacturing of products and the supplying of the other three segments, and generates turnover through the reimbursement of its services. The manufacturing costs of products are credited to the production segment at standard prices along with remuneration in the form of a mark-up for materials and production costs.