Asia Cork (STU:6A3) Inventory Turnover : 3.00 (As of Dec. 2010)

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What is Asia Cork 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. Asia Cork's Cost of Goods Sold for the six months ended in Dec. 2010 was €15.60 Mil. Asia Cork's Average Total Inventories for the quarter that ended in Dec. 2010 was €5.20 Mil. Asia Cork's Inventory Turnover for the quarter that ended in Dec. 2010 was 3.00.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Asia Cork's Days Inventory for the six months ended in Dec. 2010 was 60.82.

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. Asia Cork's Inventory-to-Revenue for the quarter that ended in Dec. 2010 was 0.24.

Asia Cork Inventory Turnover Historical Data

The historical data trend for Asia Cork'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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Asia Cork Inventory Turnover Chart

Asia Cork Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Inventory Turnover

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11.28

13.02

7.72

3.58

3.00

Asia Cork Semi-Annual Data
	Dec05	Dec06	Dec07	Dec08	Dec09	Dec10
Inventory Turnover	Get a 7-Day Free Trial			11.28	13.02	7.72	3.58	3.00

Asia Cork Inventory Turnover Calculation

Asia Cork's Inventory Turnover for the fiscal year that ended in Dec. 2010 is calculated as

	Inventory Turnover (A: Dec. 2010 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2010 )	/ (	(Total Inventories (A: Dec. 2009 )	+	Total Inventories (A: Dec. 2010 ))	/	count )
=	15.6	/ (	(4.096	+	6.302)	/	2 )
=	15.6	/	5.199
=	3.00

Asia Cork's Inventory Turnover for the quarter that ended in Dec. 2010 is calculated as

	Inventory Turnover (Q: Dec. 2010 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2010 )	/ (	(Total Inventories (Q: Dec. 2009 )	+	Total Inventories (Q: Dec. 2010 ))	/	count )
=	15.6	/ (	(4.096	+	6.302)	/	2 )
=	15.6	/	5.199
=	3.00

Asia Cork (STU:6A3) 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.

Asia Cork's Days Inventory for the six months ended in Dec. 2010 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2010 )	/	Cost of Goods Sold (Q: Dec. 2010 )	*	Days in Period
	=	5.199	/	15.6	*	365 / 2
	=	60.82

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.

Asia Cork's Inventory to Revenue for the quarter that ended in Dec. 2010 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2010 )	/	Revenue (Q: Dec. 2010 )
	=	5.199	/	21.981
	=	0.24

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.

Asia Cork Inventory Turnover Related Terms

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Asia Cork Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Asia Cork Inc (STU:6A3) » Definitions » Inventory Turnover

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Address

Website

Asia Cork Incorporated formerly known as Hankersen International Corp., was incorporated under the laws of the State of Delaware on August 1, 1996. On July 11, 2008, the Company's wholly owned subsidiary, Asia Cork Inc., was merged into its parent, the Company, in order to change the name of the Company, after approval by the Board of Directors of the Company according to the Delaware General Corporation Law. As permitted by Delaware General Corporation Law, the Company assumed the name of its wholly owned subsidiary following the merger and now operates under the name Asia Cork Inc. The Company through its subsidiaries is engaged in the development, manufacture and distribution of cork products including cork wood floor, wall and decorating materials. It produces approximately seven series of cork flooring planks with over approximately 50 different patterns, colors and granules. It produces approximately 16 types of cork wallboard and approximately three types of cork art crafts with different patterns. It products include Cork Granule, Cork Sheet and Roll, Glue-down Floor, Floating Floor, Cork Wallboard and Basic Board. All these products utilize staining technology to create different colors. Its cork art crafts include ornaments and decorations. Wallboard could also be used as decorative material. It also sells semi-finished cork products to other manufacturers which use cork granule and sheet roll as raw materials. Cork granule comes in varies sizes and is the early stage of cork material processing. It sells its products directly to customers in China through its own sales team, and it distributes its products to customers overseas through unrelated distributors and sales agents. The countries in which its products were distributed through these sales agents include India, the United States of America, Germany and Japan. The Company competes with Portugal cork manufacturers as its major product is cork stopper used for wine bottles, which usually accounts for one third of its total sales and even higher percentage of profit. Domestically, the Company competes with local mid-sized cork manufacturers. These companies' products are semi-finished cork boards, sheets and roles.

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