Railpower Technologies (Railpower Technologies) Inventory Turnover : 0.20 (As of Sep. 2008)

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What is Railpower Technologies 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. Railpower Technologies's Cost of Goods Sold for the three months ended in Sep. 2008 was $3.11 Mil. Railpower Technologies's Average Total Inventories for the quarter that ended in Sep. 2008 was $15.31 Mil. Railpower Technologies's Inventory Turnover for the quarter that ended in Sep. 2008 was 0.20.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Railpower Technologies's Days Inventory for the three months ended in Sep. 2008 was 449.63.

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. Railpower Technologies's Inventory-to-Revenue for the quarter that ended in Sep. 2008 was 5.62.

Railpower Technologies Inventory Turnover Historical Data

The historical data trend for Railpower 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.

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Railpower Technologies Inventory Turnover Chart

Railpower Technologies Annual Data

Trend

Sep00

Sep01

Sep02

Sep03

Dec04

Dec05

Dec06

Dec07

Inventory Turnover

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0.14

2.63

1.05

3.23

Railpower Technologies Quarterly Data
	Dec03	Mar04	Jun04	Sep04	Dec04	Mar05	Jun05	Sep05	Dec05	Mar06	Jun06	Sep06	Dec06	Mar07	Jun07	Sep07	Dec07	Mar08	Jun08	Sep08
Inventory Turnover	Get a 7-Day Free Trial															1.26	0.17	0.24	0.33	0.20

Railpower Technologies Inventory Turnover Calculation

Railpower Technologies's Inventory Turnover for the fiscal year that ended in Dec. 2007 is calculated as

	Inventory Turnover (A: Dec. 2007 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2007 )	/ (	(Total Inventories (A: Dec. 2006 )	+	Total Inventories (A: Dec. 2007 ))	/	count )
=	110.854	/ (	(53.78	+	14.824)	/	2 )
=	110.854	/	34.302
=	3.23

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

	Inventory Turnover (Q: Sep. 2008 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2008 )	/ (	(Total Inventories (Q: Jun. 2008 )	+	Total Inventories (Q: Sep. 2008 ))	/	count )
=	3.107	/ (	(16.077	+	14.542)	/	2 )
=	3.107	/	15.3095
=	0.20

Railpower Technologies (OTCPK:RLPHQ) 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.

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

Days Inventory	=	Average Total Inventories (Q: Sep. 2008 )	/	Cost of Goods Sold (Q: Sep. 2008 )	*	Days in Period
	=	15.3095	/	3.107	*	365 / 4
	=	449.63

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.

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

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2008 )	/	Revenue (Q: Sep. 2008 )
	=	15.3095	/	2.723
	=	5.62

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.

Railpower Technologies Inventory Turnover Related Terms

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Railpower Technologies (Railpower Technologies) Business Description

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GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Railpower Technologies Corp (OTCPK:RLPHQ) » Definitions » Inventory Turnover

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Address

9955 De Catania Avenue, Suite 105, Brossard, QC, CAN, J4Z 3V5

Website

http://www.railpower.com

Railpower Technologies Corp is engaged in the development, construction, marketing and sales of high performance, clean locomotives and power plants for the transportation and related industries.

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