LZENF (Lizhan Environmental) Inventory Turnover : 0.31 (As of Mar. 2012)

View and export this data going back to 2010. Start your Free Trial

What is Lizhan Environmental 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. Lizhan Environmental's Cost of Goods Sold for the three months ended in Mar. 2012 was $4.67 Mil. Lizhan Environmental's Average Total Inventories for the quarter that ended in Mar. 2012 was $14.83 Mil. Lizhan Environmental's Inventory Turnover for the quarter that ended in Mar. 2012 was 0.31.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Lizhan Environmental's Days Inventory for the three months ended in Mar. 2012 was 289.88.

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. Lizhan Environmental's Inventory-to-Revenue for the quarter that ended in Mar. 2012 was 2.81.

Lizhan Environmental Inventory Turnover Historical Data

The historical data trend for Lizhan Environmental'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.

* Premium members only.

Lizhan Environmental Inventory Turnover Chart

Lizhan Environmental Annual Data

Trend

Sep08

Sep09

Sep10

Sep11

Inventory Turnover

6.85

7.11

8.61

3.35

Lizhan Environmental Quarterly Data
	Sep08	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Mar12
Inventory Turnover	Get a 7-Day Free Trial							1.44	0.57	0.85	0.57	0.31

Lizhan Environmental Inventory Turnover Calculation

Lizhan Environmental's Inventory Turnover for the fiscal year that ended in Sep. 2011 is calculated as

	Inventory Turnover (A: Sep. 2011 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Sep. 2011 )	/ (	(Total Inventories (A: Sep. 2010 )	+	Total Inventories (A: Sep. 2011 ))	/	count )
=	29.614	/ (	(4.666	+	13.009)	/	2 )
=	29.614	/	8.8375
=	3.35

Lizhan Environmental's Inventory Turnover for the quarter that ended in Mar. 2012 is calculated as

	Inventory Turnover (Q: Mar. 2012 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2012 )	/ (	(Total Inventories (Q: Sep. 2011 )	+	Total Inventories (Q: Mar. 2012 ))	/	count )
=	4.667	/ (	(13.009	+	16.643)	/	2 )
=	4.667	/	14.826
=	0.31

Lizhan Environmental (OTCPK:LZENF) 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.

Lizhan Environmental's Days Inventory for the three months ended in Mar. 2012 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2012 )	/	Cost of Goods Sold (Q: Mar. 2012 )	*	Days in Period
	=	14.826	/	4.667	*	365 / 4
	=	289.88

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.

Lizhan Environmental's Inventory to Revenue for the quarter that ended in Mar. 2012 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2012 )	/	Revenue (Q: Mar. 2012 )
	=	14.826	/	5.272
	=	2.81

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.

Lizhan Environmental Inventory Turnover Related Terms

Thank you for viewing the detailed overview of Lizhan Environmental's Inventory Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.

Lizhan Environmental Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Lizhan Environmental Corp (OTCPK:LZENF) » Definitions » Inventory Turnover

Traded in Other Exchanges

N/A

Address

No. 716, Qifu Road, Wutong Street, Tongxiang, Zhejiang Province, CHN, 314500

Website

http://gb.lzencorp.com/

Lizhan Environmental Corp manufactures, distributes and markets synthetic leather and other fabrics from recycled leather waste, among other materials. It's products used in the production of residential and office furniture, garments, automotive upholstery products, and various consumer applications. It sells domestically in China and export to distributors and manufacturers in the United States and other foreign countries.

Lizhan Environmental Headlines

No Headlines