OPST (OPT Sciences) Inventory Turnover: 1.07 (As of Jul. 2015)

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What is OPT Sciences Inventory Turnover?

OPT Sciences OPST Inventory Turnover is 1.07 as of Jul. 2015.

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. OPT Sciences's Cost of Goods Sold for the three months ended in Jul. 2015 was $1.10 Mil. OPT Sciences's Average Total Inventories for the quarter that ended in Jul. 2015 was $1.03 Mil. OPT Sciences's Inventory Turnover for the quarter that ended in Jul. 2015 was 1.07.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. OPT Sciences's Days Inventory for the three months ended in Jul. 2015 was 85.53.

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. OPT Sciences's Inventory-to-Revenue for the quarter that ended in Jul. 2015 was 0.52.

OPT Sciences (OTCPK:OPST) 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.

OPT Sciences's Days Inventory for the three months ended in Jul. 2015 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jul. 2015 )	/	Cost of Goods Sold (Q: Jul. 2015 )	*	Days in Period
	=	1.031	/	1.1	*	365 / 4
	=	85.53

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.

OPT Sciences's Inventory to Revenue for the quarter that ended in Jul. 2015 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jul. 2015 )	/	Revenue (Q: Jul. 2015 )
	=	1.031	/	1.975
	=	0.52

* 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.

OPT Sciences Inventory Turnover Related Terms

OPT Sciences Inventory Turnover Historical Data

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The historical data trend for OPT Sciences's Inventory Turnover can be seen below:

OPT Sciences Inventory Turnover Chart

OPT Sciences Annual Data

Trend

Oct05

Oct06

Oct07

Oct08

Oct09

Oct10

Oct11

Oct12

Oct13

Oct14

Inventory Turnover

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5.77

5.70

6.61

4.92

5.09

OPT Sciences Quarterly Data
	Oct10	Jan11	Apr11	Jul11	Oct11	Jan12	Apr12	Jul12	Oct12	Jan13	Apr13	Jul13	Oct13	Jan14	Apr14	Jul14	Oct14	Jan15	Apr15	Jul15
Inventory Turnover	Get a 7-Day Free Trial															1.17	1.48	1.42	1.08	1.07

OPT Sciences Inventory Turnover Calculation

OPT Sciences's Inventory Turnover for the fiscal year that ended in Oct. 2014 is calculated as

	Inventory Turnover (A: Oct. 2014 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Oct. 2014 )	/ (	(Total Inventories (A: Oct. 2013 )	+	Total Inventories (A: Oct. 2014 ))	/	count )
=	4.61	/ (	(0.955	+	0.858)	/	2 )
=	4.61	/	0.9065
=	5.09

OPT Sciences's Inventory Turnover for the quarter that ended in Jul. 2015 is calculated as

	Inventory Turnover (Q: Jul. 2015 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jul. 2015 )	/ (	(Total Inventories (Q: Apr. 2015 )	+	Total Inventories (Q: Jul. 2015 ))	/	count )
=	1.1	/ (	(0.993	+	1.069)	/	2 )
=	1.1	/	1.031
=	1.07

Frequently Asked Questions Learn more about Inventory Turnover →

What does a Inventory Turnover of 1.07 mean?

OPT Sciences (OPST) has a Inventory Turnover of 1.07 as of Jul. 2015. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on OPT Sciences and its competitors.

Is OPT Sciences' Inventory Turnover too high?

OPT Sciences' current Inventory Turnover is 1.07.

How does OPT Sciences' Inventory Turnover compare to SDEV and SIF?

OPT Sciences' Inventory Turnover of 1.07 can be compared against companies in the Aerospace & Defense 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 an Aerospace & Defense company?

A good Inventory Turnover depends on the Aerospace & Defense 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 OPT Sciences and its competitors. OPT Sciences's current Inventory Turnover is 1.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is OPT Sciences stock overvalued right now?

OPT Sciences (OPST) has a current Inventory Turnover of 1.07. The current Inventory Turnover is 1.07. 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 OPT Sciences (OPST), the current Inventory Turnover is 1.07 as of Jul. 2015. 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.

OPT Sciences Business Description

Industry Industrials Aerospace & Defense

Comparable Companies SDEV SIF OPXS TSX:AVP TIKK BOM:523606 MICT ASX:OEC LSE:VEL XKLS:5149 OCSE:DAC XPAR:ALDR BKK:ASIMAR ASTC XCNQ:SNA BSE:SNO ROCO:8495 BOM:522229 UAVS PSSR

Address 1912 Bannard Street, Cinnaminson, NJ, USA, 08077

Website http://www.optsciences.com

OPT Sciences Corp through its operating subsidiary O & S Research, manufactures precision optical components for the Aerospace Industry. It provides anti-glare optical coatings, panels for liquid crystal displays ("LCD"), LCD glass heaters, and electromagnetic interference shielding glass. In addition, it also offers glass cutting, grinding, and painting services. Geographically, the activities are performed in the United States and it derives revenue from product sales when products are shipped to customers.