GURUFOCUS.COM » STOCK LIST » FocalTech Corporation Ltd (TPE:5280) » Definitions » Inventory Turnover

FocalTech (TPE:5280) Inventory Turnover : 1.15 (As of Jun. 2014)


View and export this data going back to . Start your Free Trial

What is FocalTech 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. FocalTech's Cost of Goods Sold for the six months ended in Jun. 2014 was NT$746 Mil. FocalTech's Average Total Inventories for the quarter that ended in Jun. 2014 was NT$1,090 Mil. FocalTech's Inventory Turnover for the quarter that ended in Jun. 2014 was 1.15.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. FocalTech's Days Inventory for the six months ended in Jun. 2014 was 266.70.

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. FocalTech's Inventory-to-Revenue for the quarter that ended in Jun. 2014 was 0.84.

FocalTech Inventory Turnover Historical Data

The historical data trend for FocalTech'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.

* Premium members only.

FocalTech Inventory Turnover Chart

FocalTech Annual Data
Trend Dec11 Dec12
Inventory Turnover
1.93 3.60

FocalTech Semi-Annual Data
Dec12 Jun13 Jun14
Inventory Turnover - 0.48 1.15

FocalTech Inventory Turnover Calculation

FocalTech'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 )
=2202.022 / ((301.919 + 920.405) / 2 )
=2202.022 / 611.162
=3.60

FocalTech's Inventory Turnover for the quarter that ended in Jun. 2014 is calculated as

Inventory Turnover (Q: Jun. 2014 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Jun. 2014 ) / ((Total Inventories (Q: Jun. 2013 ) + Total Inventories (Q: Jun. 2014 )) / count )
=745.542 / ((1532.95 + 646.09) / 2 )
=745.542 / 1089.52
=0.68

* 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.

FocalTech  (TPE:5280) 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.

FocalTech's Days Inventory for the six months ended in Jun. 2014 is calculated as:

Days Inventory =Average Total Inventories (Q: Jun. 2014 )/Cost of Goods Sold (Q: Jun. 2014 )*Days in Period
=1089.52/745.542*365 / 2
=266.70

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.

FocalTech's Inventory to Revenue for the quarter that ended in Jun. 2014 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Jun. 2014 ) / Revenue (Q: Jun. 2014 )
=1089.52 / 1292.621
=0.84

* 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.

FocalTech Inventory Turnover Related Terms

Thank you for viewing the detailed overview of FocalTech's Inventory Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.

FocalTech (TPE:5280) Headlines

No Headlines