Riviera Tool Co (Riviera Tool Co) Inventory Turnover : 14.56 (As of Nov. 2006)

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What is Riviera Tool Co 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. Riviera Tool Co's Cost of Goods Sold for the three months ended in Nov. 2006 was $3.64 Mil. Riviera Tool Co's Average Total Inventories for the quarter that ended in Nov. 2006 was $0.25 Mil. Riviera Tool Co's Inventory Turnover for the quarter that ended in Nov. 2006 was 14.56.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Riviera Tool Co's Days Inventory for the three months ended in Nov. 2006 was 6.27.

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. Riviera Tool Co's Inventory-to-Revenue for the quarter that ended in Nov. 2006 was 0.06.

Riviera Tool Co Inventory Turnover Historical Data

The historical data trend for Riviera Tool Co'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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Riviera Tool Co Inventory Turnover Chart

Riviera Tool Co Annual Data

Trend

Aug97

Aug98

Aug99

Aug00

Aug01

Aug02

Aug03

Aug04

Aug05

Aug06

Inventory Turnover

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52.43

122.83

123.36

71.65

87.81

Riviera Tool Co Quarterly Data
	Feb02	May02	Aug02	Nov02	Feb03	May03	Aug03	Nov03	Feb04	May04	Aug04	Nov04	Feb05	May05	Aug05	Nov05	Feb06	May06	Aug06	Nov06
Inventory Turnover	Get a 7-Day Free Trial															23.17	25.36	21.00	20.28	14.56

Riviera Tool Co Inventory Turnover Calculation

Riviera Tool Co's Inventory Turnover for the fiscal year that ended in Aug. 2006 is calculated as

	Inventory Turnover (A: Aug. 2006 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Aug. 2006 )	/ (	(Total Inventories (A: Aug. 2005 )	+	Total Inventories (A: Aug. 2006 ))	/	count )
=	21.337	/ (	(0.236	+	0.25)	/	2 )
=	21.337	/	0.243
=	87.81

Riviera Tool Co's Inventory Turnover for the quarter that ended in Nov. 2006 is calculated as

	Inventory Turnover (Q: Nov. 2006 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Nov. 2006 )	/ (	(Total Inventories (Q: Aug. 2006 )	+	Total Inventories (Q: Nov. 2006 ))	/	count )
=	3.641	/ (	(0.25	+	0.25)	/	2 )
=	3.641	/	0.25
=	14.56

Riviera Tool Co (OTCPK:RIVT) 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.

Riviera Tool Co's Days Inventory for the three months ended in Nov. 2006 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Nov. 2006 )	/	Cost of Goods Sold (Q: Nov. 2006 )	*	Days in Period
	=	0.25	/	3.641	*	365 / 4
	=	6.27

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.

Riviera Tool Co's Inventory to Revenue for the quarter that ended in Nov. 2006 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Nov. 2006 )	/	Revenue (Q: Nov. 2006 )
	=	0.25	/	4.308
	=	0.06

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.

Riviera Tool Co Inventory Turnover Related Terms

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Riviera Tool Co (Riviera Tool Co) Business Description

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Address

5460 Executive Parkway S.E., Grand Rapids, MI, USA, 49512

Website

http://www.rivieratool.com

Riviera Tool Co designs and manufactures large stamping die systems used to form sheet metal parts. These systems are used by automobile manufacturers to produce automobile and truck body parts such as roofs, hoods, fenders, doors, door frames, structural components, and bumpers. The company's customers include major automobile manufacturers.

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