RITT (RIT Technologies) Inventory Turnover: 0.69 (As of Sep. 2015)


What is RIT Technologies Inventory Turnover?

RIT Technologies RITT Inventory Turnover is 0.69 as of Sep. 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. RIT Technologies's Cost of Goods Sold for the three months ended in Sep. 2015 was $2.31 Mil. RIT Technologies's Average Total Inventories for the quarter that ended in Sep. 2015 was $3.34 Mil. RIT Technologies's Inventory Turnover for the quarter that ended in Sep. 2015 was 0.69.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. RIT Technologies's Days Inventory for the three months ended in Sep. 2015 was 131.89.

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. RIT Technologies's Inventory-to-Revenue for the quarter that ended in Sep. 2015 was 0.77.

RIT Technologies  (OTCPK:RITT) 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.

RIT Technologies's Days Inventory for the three months ended in Sep. 2015 is calculated as:

Days Inventory =Average Total Inventories (Q: Sep. 2015 )/Cost of Goods Sold (Q: Sep. 2015 )*Days in Period
=3.3445/2.314*365 / 4
=131.89

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.

RIT Technologies's Inventory to Revenue for the quarter that ended in Sep. 2015 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Sep. 2015 ) / Revenue (Q: Sep. 2015 )
=3.3445 / 4.322
=0.77

* 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.

RIT Technologies Inventory Turnover Related Terms

RIT Technologies Inventory Turnover Historical Data

* Premium members only.

The historical data trend for RIT 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.

RIT Technologies Inventory Turnover Chart

RIT Technologies Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.90 2.11 1.98 2.24 1.43

RIT Technologies Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
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 0.27 0.43 0.53 0.70 0.69

RIT Technologies Inventory Turnover Calculation

RIT Technologies's Inventory Turnover for the fiscal year that ended in Dec. 2014 is calculated as

Inventory Turnover (A: Dec. 2014 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2014 ) / ((Total Inventories (A: Dec. 2013 ) + Total Inventories (A: Dec. 2014 )) / count )
=5.196 / ((3.647 + 3.617) / 2 )
=5.196 / 3.632
=1.43

RIT Technologies's Inventory Turnover for the quarter that ended in Sep. 2015 is calculated as

Inventory Turnover (Q: Sep. 2015 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Sep. 2015 ) / ((Total Inventories (Q: Jun. 2015 ) + Total Inventories (Q: Sep. 2015 )) / count )
=2.314 / ((3.495 + 3.194) / 2 )
=2.314 / 3.3445
=0.69

* 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 0.69 mean?
RIT Technologies (RITT) has a Inventory Turnover of 0.69 as of Sep. 2015. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on RIT Technologies and its competitors.
Is RIT Technologies' Inventory Turnover too high?
RIT Technologies' current Inventory Turnover is 0.69.
How does RIT Technologies' Inventory Turnover compare to OSAT and GTXO?
RIT Technologies' Inventory Turnover of 0.69 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 RIT Technologies and its competitors. RIT Technologies's current Inventory Turnover is 0.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RIT Technologies stock overvalued right now?
RIT Technologies (RITT) has a current Inventory Turnover of 0.69. The current Inventory Turnover is 0.69. 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 RIT Technologies (RITT), the current Inventory Turnover is 0.69 as of Sep. 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.

RIT Technologies Business Description

Address 24 Raoul Wallenberg Street, Tel Aviv, ISR, 69719
RIT Technologies Ltd provides Intelligent Infrastructure Management solutions and develops indoor optical wireless technology solutions. The company's products include PatchView that provides security and network utilization for data centers, communication rooms and work space environments; and Beamcaster that provides IWON technology solutions mainly for open-space offices. Its Intelligent Infrastructure Management solutions are deployed in various organizations including data centers in the private sector, government agencies, financial institutions, airport authorities, healthcare and education institutions.