Wafer Works Optronics (ROCO:5221) Inventory Turnover : 1.72 (As of Jun. 2013)

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What is Wafer Works Optronics 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. Wafer Works Optronics's Cost of Goods Sold for the six months ended in Jun. 2013 was NT$220.4 Mil. Wafer Works Optronics's Average Total Inventories for the quarter that ended in Jun. 2013 was NT$128.3 Mil. Wafer Works Optronics's Inventory Turnover for the quarter that ended in Jun. 2013 was 1.72.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Wafer Works Optronics's Days Inventory for the six months ended in Jun. 2013 was 106.27.

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. Wafer Works Optronics's Inventory-to-Revenue for the quarter that ended in Jun. 2013 was 1.20.

Wafer Works Optronics Inventory Turnover Historical Data

The historical data trend for Wafer Works Optronics'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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Wafer Works Optronics Inventory Turnover Chart

Wafer Works Optronics Annual Data

Trend

Dec10

Dec11

Dec12

Inventory Turnover

1.14

2.72

2.57

Wafer Works Optronics Semi-Annual Data
	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13
Inventory Turnover	Get a 7-Day Free Trial			1.24	1.30	1.30	1.46	1.72

Wafer Works Optronics Inventory Turnover Calculation

Wafer Works Optronics's Inventory Turnover for the fiscal year that ended in Dec. 2012 is calculated as

	Inventory Turnover (A: Dec. 2012 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2012 )	/ (	(Total Inventories (A: Dec. 2011 )	+	Total Inventories (A: Dec. 2012 ))	/	count )
=	402.281	/ (	(183.436	+	130.175)	/	2 )
=	402.281	/	156.8055
=	2.57

Wafer Works Optronics's Inventory Turnover for the quarter that ended in Jun. 2013 is calculated as

	Inventory Turnover (Q: Jun. 2013 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jun. 2013 )	/ (	(Total Inventories (Q: Dec. 2012 )	+	Total Inventories (Q: Jun. 2013 ))	/	count )
=	220.4	/ (	(130.175	+	126.506)	/	2 )
=	220.4	/	128.3405
=	1.72

Wafer Works Optronics (ROCO:5221) 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.

Wafer Works Optronics's Days Inventory for the six months ended in Jun. 2013 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jun. 2013 )	/	Cost of Goods Sold (Q: Jun. 2013 )	*	Days in Period
	=	128.3405	/	220.4	*	365 / 2
	=	106.27

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.

Wafer Works Optronics's Inventory to Revenue for the quarter that ended in Jun. 2013 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jun. 2013 )	/	Revenue (Q: Jun. 2013 )
	=	128.3405	/	106.741
	=	1.20

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.

Wafer Works Optronics Inventory Turnover Related Terms

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Wafer Works Optronics Business Description

Industry

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Address

Website

http://www.wwopt.com

Wafer Works Optronics Corp. is engaged in the development and production of sapphire monocrystalline ingots and sapphire substrates. The company also provides polishing services. It offers monocrystalline ingots for photovoltaic applications; etc.

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