Turners Group NZ (NZSE:TUA) Inventory Turnover : 2.51 (As of Jun. 2014)

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What is Turners Group NZ 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. Turners Group NZ's Cost of Goods Sold for the six months ended in Jun. 2014 was NZ$24.40 Mil. Turners Group NZ's Average Total Inventories for the quarter that ended in Jun. 2014 was NZ$9.71 Mil. Turners Group NZ's Inventory Turnover for the quarter that ended in Jun. 2014 was 2.51.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Turners Group NZ's Days Inventory for the six months ended in Jun. 2014 was 72.64.

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. Turners Group NZ's Inventory-to-Revenue for the quarter that ended in Jun. 2014 was 0.33.

Turners Group NZ Inventory Turnover Historical Data

The historical data trend for Turners Group NZ'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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Turners Group NZ Inventory Turnover Chart

Turners Group NZ Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Inventory Turnover

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3.95

4.28

4.65

5.23

6.10

Turners Group NZ Semi-Annual Data
	Dec03	Jun04	Dec04	Jun05	Dec05	Jun07	Dec07	Jun08	Dec08	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14
Inventory Turnover	Get a 7-Day Free Trial															2.11	2.77	3.09	2.96	2.51

Turners Group NZ Inventory Turnover Calculation

Turners Group NZ'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 )
=	39.824	/ (	(4.902	+	8.16)	/	2 )
=	39.824	/	6.531
=	6.10

Turners Group NZ's Inventory Turnover for the quarter that ended in Jun. 2014 is calculated as

	Inventory Turnover (Q: Jun. 2014 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jun. 2014 )	/ (	(Total Inventories (Q: Dec. 2013 )	+	Total Inventories (Q: Jun. 2014 ))	/	count )
=	24.399	/ (	(8.16	+	11.264)	/	2 )
=	24.399	/	9.712
=	2.51

Turners Group NZ (NZSE:TUA) 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.

Turners Group NZ's Days Inventory for the six months ended in Jun. 2014 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jun. 2014 )	/	Cost of Goods Sold (Q: Jun. 2014 )	*	Days in Period
	=	9.712	/	24.399	*	365 / 2
	=	72.64

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.

Turners Group NZ's Inventory to Revenue for the quarter that ended in Jun. 2014 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jun. 2014 )	/	Revenue (Q: Jun. 2014 )
	=	9.712	/	29.853
	=	0.33

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.

Turners Group NZ Inventory Turnover Related Terms

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Turners Group NZ (NZSE:TUA) Business Description

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GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Turners Group NZ Ltd (NZSE:TUA) » Definitions » Inventory Turnover

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Address

Website

http://www.turners.co.nz

Turners Auctions Limited (TUA-NZ) is New Zealand's largest auction house with 16 branches nation wide and annual turnover exceeding NZ$400m. TUA is also the largest single seller of motor vehicles in New Zealand. The business operates in two broad markets: used vehicles and commercial goods. Vehicle sales include trucks, damaged insurance salvaged vehicles, light commercial vehicles and passenger cars. Commercial sales include a wide variety of surplus equipment such as heavy plant and machinery, police and custom seized goods, liquidator sales, catering equipment, computers and furniture.