PGNT (Paragon Technologies) Inventory Turnover: 3.44 (As of Dec. 2008)

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What is Paragon Technologies Inventory Turnover?

Paragon Technologies PGNT Inventory Turnover is 3.44 as of Dec. 2008.

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. Paragon Technologies's Cost of Goods Sold for the three months ended in Dec. 2008 was $2.58 Mil. Paragon Technologies's Average Total Inventories for the quarter that ended in Dec. 2008 was $0.75 Mil. Paragon Technologies's Inventory Turnover for the quarter that ended in Dec. 2008 was 3.44.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Paragon Technologies's Days Inventory for the three months ended in Dec. 2008 was 26.53.

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. Paragon Technologies's Inventory-to-Revenue for the quarter that ended in Dec. 2008 was 0.20.

Paragon Technologies  (OTCPK:PGNT) 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.

Paragon Technologies's Days Inventory for the three months ended in Dec. 2008 is calculated as:

Days Inventory =Average Total Inventories (Q: Dec. 2008 )/Cost of Goods Sold (Q: Dec. 2008 )*Days in Period
=0.749/2.576*365 / 4
=26.53

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.

Paragon Technologies's Inventory to Revenue for the quarter that ended in Dec. 2008 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Dec. 2008 ) / Revenue (Q: Dec. 2008 )
=0.749 / 3.817
=0.20

* 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.

Paragon Technologies Inventory Turnover Related Terms

Paragon Technologies Inventory Turnover Historical Data

* Premium members only.

The historical data trend for Paragon Technologies'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.

Paragon Technologies Inventory Turnover Chart

Paragon Technologies Annual Data
Trend Feb99 Dec00 Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.13 34.89 30.73 24.44 15.08

Paragon Technologies Quarterly Data
Mar04 Jun04 Sep04 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08
Inventory Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.48 4.33 4.10 3.24 3.44

Paragon Technologies Inventory Turnover Calculation

Paragon Technologies's Inventory Turnover for the fiscal year that ended in Dec. 2008 is calculated as

Inventory Turnover (A: Dec. 2008 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2008 ) / ((Total Inventories (A: Dec. 2007 ) + Total Inventories (A: Dec. 2008 )) / count )
=11.793 / ((0.859 + 0.705) / 2 )
=11.793 / 0.782
=15.08

Paragon Technologies's Inventory Turnover for the quarter that ended in Dec. 2008 is calculated as

Inventory Turnover (Q: Dec. 2008 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Dec. 2008 ) / ((Total Inventories (Q: Sep. 2008 ) + Total Inventories (Q: Dec. 2008 )) / count )
=2.576 / ((0.793 + 0.705) / 2 )
=2.576 / 0.749
=3.44

* 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 3.44 mean?
Paragon Technologies (PGNT) has a Inventory Turnover of 3.44 as of Dec. 2008. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Paragon Technologies and its competitors.
Is Paragon Technologies' Inventory Turnover too high?
Paragon Technologies' current Inventory Turnover is 3.44.
How does Paragon Technologies' Inventory Turnover compare to AMMX and ARTW?
Paragon Technologies' Inventory Turnover of 3.44 can be compared against companies in the Hardware 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 Hardware company?
A good Inventory Turnover depends on the Hardware 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 Paragon Technologies and its competitors. Paragon Technologies's current Inventory Turnover is 3.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paragon Technologies stock overvalued right now?
Paragon Technologies (PGNT) has a current Inventory Turnover of 3.44. The current Inventory Turnover is 3.44. 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 Paragon Technologies (PGNT), the current Inventory Turnover is 3.44 as of Dec. 2008. 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.

Paragon Technologies Business Description

Address 101 Larry Holmes Drive, Suite 500, Easton, PA, USA, 18042
Paragon Technologies Inc is a diversified holding company composed of three business segments: Automation, Distribution, and Real Estate. In addition, it may also invest its cash balance in marketable securities. The company generates a majority of its revenue from the Distribution segment, in which it distributes servers, workstations, storage, networking, high-end printers, high-end audio visual and power protection systems, notebook computers, desktop computers, printers, projectors, gaming, and accessories. Under this segment, it also sells consumer electronics and home appliances and provides services such as managed services, printing, electronic documents management, electronic invoicing, and high-capacity storage solutions to businesses.