Solar Enertech (STU:WOU) Inventory Turnover: 2.06 (As of Dec. 2011)


What is Solar Enertech Inventory Turnover?

Solar Enertech STU:WOU Inventory Turnover is 2.06 as of Dec. 2011.

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. Solar Enertech's Cost of Goods Sold for the three months ended in Dec. 2011 was €2.35 Mil. Solar Enertech's Average Total Inventories for the quarter that ended in Dec. 2011 was €1.14 Mil. Solar Enertech's Inventory Turnover for the quarter that ended in Dec. 2011 was 2.06.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Solar Enertech's Days Inventory for the three months ended in Dec. 2011 was 44.21.

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. Solar Enertech's Inventory-to-Revenue for the quarter that ended in Dec. 2011 was 0.71.

Solar Enertech  (STU:WOU) 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.

Solar Enertech's Days Inventory for the three months ended in Dec. 2011 is calculated as:

Days Inventory =Average Total Inventories (Q: Dec. 2011 )/Cost of Goods Sold (Q: Dec. 2011 )*Days in Period
=1.138/2.349*365 / 4
=44.21

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.

Solar Enertech's Inventory to Revenue for the quarter that ended in Dec. 2011 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Dec. 2011 ) / Revenue (Q: Dec. 2011 )
=1.138 / 1.601
=0.71

* 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.

Solar Enertech Inventory Turnover Related Terms

Solar Enertech Inventory Turnover Historical Data

* Premium members only.

The historical data trend for Solar Enertech'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.

Solar Enertech Inventory Turnover Chart

Solar Enertech Annual Data
Trend Sep05 Sep06 Sep07 Sep08 Sep09 Sep10 Sep11
Inventory Turnover
Get a 7-Day Free Trial 1.04 6.14 7.56 16.89 13.51

Solar Enertech Quarterly Data
Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11
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 3.03 2.03 3.06 2.16 2.06

Solar Enertech Inventory Turnover Calculation

Solar Enertech's Inventory Turnover for the fiscal year that ended in Sep. 2011 is calculated as

Inventory Turnover (A: Sep. 2011 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Sep. 2011 ) / ((Total Inventories (A: Sep. 2010 ) + Total Inventories (A: Sep. 2011 )) / count )
=31.785 / ((3.115 + 1.591) / 2 )
=31.785 / 2.353
=13.51

Solar Enertech's Inventory Turnover for the quarter that ended in Dec. 2011 is calculated as

Inventory Turnover (Q: Dec. 2011 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Dec. 2011 ) / ((Total Inventories (Q: Sep. 2011 ) + Total Inventories (Q: Dec. 2011 )) / count )
=2.349 / ((1.591 + 0.685) / 2 )
=2.349 / 1.138
=2.06

* 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 2.06 mean?
Solar Enertech (STU:WOU) has a Inventory Turnover of 2.06 as of Dec. 2011. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Solar Enertech and its competitors.
Is Solar Enertech's Inventory Turnover too high?
Solar Enertech's current Inventory Turnover is 2.06.
How does Solar Enertech's Inventory Turnover compare to competitors?
Solar Enertech's Inventory Turnover of 2.06 can be compared against companies in the Semiconductors 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 Semiconductors company?
A good Inventory Turnover depends on the Semiconductors 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 Solar Enertech and its competitors. Solar Enertech's current Inventory Turnover is 2.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Solar Enertech stock overvalued right now?
Solar Enertech (STU:WOU) has a current Inventory Turnover of 2.06. The current Inventory Turnover is 2.06. 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 Solar Enertech (STU:WOU), the current Inventory Turnover is 2.06 as of Dec. 2011. 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.

Solar Enertech Business Description

Address 655 West Evelyn Avenue, Suite 2, Mountain View, CA, USA, 94041
Solar Enertech Corp currently operates as a photovoltaic solar energy cell manufacturer.