Formosa Epitaxyorporation (TPE:3061) Inventory Turnover : 1.27 (As of Sep. 2014)

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What is Formosa Epitaxyorporation 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. Formosa Epitaxyorporation's Cost of Goods Sold for the three months ended in Sep. 2014 was NT$1,797 Mil. Formosa Epitaxyorporation's Average Total Inventories for the quarter that ended in Sep. 2014 was NT$1,418 Mil. Formosa Epitaxyorporation's Inventory Turnover for the quarter that ended in Sep. 2014 was 1.27.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Formosa Epitaxyorporation's Days Inventory for the three months ended in Sep. 2014 was 72.04.

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. Formosa Epitaxyorporation's Inventory-to-Revenue for the quarter that ended in Sep. 2014 was 0.99.

Formosa Epitaxyorporation Inventory Turnover Historical Data

The historical data trend for Formosa Epitaxyorporation'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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Formosa Epitaxyorporation Inventory Turnover Chart

Formosa Epitaxyorporation Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Inventory Turnover

6.05

5.74

4.44

4.58

4.10

Formosa Epitaxyorporation Quarterly Data
	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14
Inventory Turnover	Get a 7-Day Free Trial											1.11	0.83	0.89	1.08	1.27

Formosa Epitaxyorporation Inventory Turnover Calculation

Formosa Epitaxyorporation's Inventory Turnover for the fiscal year that ended in Dec. 2013 is calculated as

	Inventory Turnover (A: Dec. 2013 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2013 )	/ (	(Total Inventories (A: Dec. 2012 )	+	Total Inventories (A: Dec. 2013 ))	/	count )
=	5164.791	/ (	(1035.627	+	1483.604)	/	2 )
=	5164.791	/	1259.6155
=	4.10

Formosa Epitaxyorporation's Inventory Turnover for the quarter that ended in Sep. 2014 is calculated as

	Inventory Turnover (Q: Sep. 2014 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2014 )	/ (	(Total Inventories (Q: Jun. 2014 )	+	Total Inventories (Q: Sep. 2014 ))	/	count )
=	1796.745	/ (	(1527.819	+	1309.049)	/	2 )
=	1796.745	/	1418.434
=	1.27

Formosa Epitaxyorporation (TPE:3061) 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.

Formosa Epitaxyorporation's Days Inventory for the three months ended in Sep. 2014 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2014 )	/	Cost of Goods Sold (Q: Sep. 2014 )	*	Days in Period
	=	1418.434	/	1796.745	*	365 / 4
	=	72.04

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.

Formosa Epitaxyorporation's Inventory to Revenue for the quarter that ended in Sep. 2014 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2014 )	/	Revenue (Q: Sep. 2014 )
	=	1418.434	/	1435.795
	=	0.99

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.

Formosa Epitaxyorporation Inventory Turnover Related Terms

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Formosa Epitaxyorporation (TPE:3061) Business Description

Industry

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Website

http://www.forepi.com.tw

Formosa Epitaxy Incorporation manufactures & distributes indium gallium nitride wafers & chips. Its products include InGaN wafers, green InGaN wafers & ultraviolet InGaN wafers which are used in display panels, automobile parts & other applications.

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