SPDC (Speed Commerce) Inventory Turnover: 28.14 (As of Dec. 2015)


What is Speed Commerce Inventory Turnover?

Speed Commerce SPDC Inventory Turnover is 28.14 as of Dec. 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. Speed Commerce's Cost of Goods Sold for the three months ended in Dec. 2015 was $32.5 Mil. Speed Commerce's Average Total Inventories for the quarter that ended in Dec. 2015 was $1.2 Mil. Speed Commerce's Inventory Turnover for the quarter that ended in Dec. 2015 was 28.14.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Speed Commerce's Days Inventory for the three months ended in Dec. 2015 was 3.24.

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. Speed Commerce's Inventory-to-Revenue for the quarter that ended in Dec. 2015 was 0.03.

Speed Commerce  (OTCPK:SPDC) 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.

Speed Commerce's Days Inventory for the three months ended in Dec. 2015 is calculated as:

Days Inventory =Average Total Inventories (Q: Dec. 2015 )/Cost of Goods Sold (Q: Dec. 2015 )*Days in Period
=1.1535/32.462*365 / 4
=3.24

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.

Speed Commerce's Inventory to Revenue for the quarter that ended in Dec. 2015 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Dec. 2015 ) / Revenue (Q: Dec. 2015 )
=1.1535 / 33.45
=0.03

* 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.

Speed Commerce Inventory Turnover Related Terms

Speed Commerce Inventory Turnover Historical Data

* Premium members only.

The historical data trend for Speed Commerce'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.

Speed Commerce Inventory Turnover Chart

Speed Commerce Annual Data
Trend Mar06 Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.48 0.25 1.55 0.00 62.48

Speed Commerce Quarterly Data
Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15
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 29.89 31.01 13.70 14.29 28.14

Speed Commerce Inventory Turnover Calculation

Speed Commerce's Inventory Turnover for the fiscal year that ended in Mar. 2015 is calculated as

Inventory Turnover (A: Mar. 2015 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Mar. 2015 ) / ((Total Inventories (A: Mar. 2014 ) + Total Inventories (A: Mar. 2015 )) / count )
=105.4 / ((0 + 1.687) / 1 )
=105.4 / 1.687
=62.48

Speed Commerce's Inventory Turnover for the quarter that ended in Dec. 2015 is calculated as

Inventory Turnover (Q: Dec. 2015 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Dec. 2015 ) / ((Total Inventories (Q: Sep. 2015 ) + Total Inventories (Q: Dec. 2015 )) / count )
=32.462 / ((1.575 + 0.732) / 2 )
=32.462 / 1.1535
=28.14

* 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 28.14 mean?
Speed Commerce (SPDC) has a Inventory Turnover of 28.14 as of Dec. 2015. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Speed Commerce and its competitors.
Is Speed Commerce's Inventory Turnover too high?
Speed Commerce's current Inventory Turnover is 28.14.
How does Speed Commerce's Inventory Turnover compare to RMDM and BVTK?
Speed Commerce's Inventory Turnover of 28.14 can be compared against companies in the Software 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 Software company?
A good Inventory Turnover depends on the Software 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 Speed Commerce and its competitors. Speed Commerce's current Inventory Turnover is 28.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Speed Commerce stock overvalued right now?
Speed Commerce (SPDC) has a current Inventory Turnover of 28.14. The current Inventory Turnover is 28.14. 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 Speed Commerce (SPDC), the current Inventory Turnover is 28.14 as of Dec. 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.

Speed Commerce Business Description

Address 1303 East Arapaho Road, Suite 200, Richardson, TX, USA, 75081
Speed Commerce Inc is a provider of flexible end-to-end e-commerce services to retailers and manufacturers. It provides Web platform development and hosting, order management, fulfillment, logistics and contact center services, which provide clients with transaction-based services and information management tools. It manages fulfillment center from four facilities located in Pennsylvania, Ohio, Missouri, and Texas, utilizing automation technology, such as unit sortation, pick-to-pack conveyors and radio frequency (RF) scanning.