Kokusan Denki Co (TSE:6992) Inventory Turnover : 2.34 (As of Mar. 2015)

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What is Kokusan Denki Co 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. Kokusan Denki Co's Cost of Goods Sold for the three months ended in Mar. 2015 was 円3,666 Mil. Kokusan Denki Co's Average Total Inventories for the quarter that ended in Mar. 2015 was 円1,566 Mil. Kokusan Denki Co's Inventory Turnover for the quarter that ended in Mar. 2015 was 2.34.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Kokusan Denki Co's Days Inventory for the three months ended in Mar. 2015 was 38.97.

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. Kokusan Denki Co's Inventory-to-Revenue for the quarter that ended in Mar. 2015 was 0.37.

Kokusan Denki Co Inventory Turnover Historical Data

The historical data trend for Kokusan Denki Co'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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Kokusan Denki Co Inventory Turnover Chart

Kokusan Denki Co Annual Data

Trend

Mar08

Mar09

Mar10

Mar11

Mar12

Mar13

Dec14

Inventory Turnover

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8.22

8.76

11.22

12.86

10.89

Kokusan Denki Co Quarterly Data
	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15
Inventory Turnover	Get a 7-Day Free Trial															2.78	2.56	2.56	2.41	2.34

Kokusan Denki Co Inventory Turnover Calculation

Kokusan Denki Co's Inventory Turnover for the fiscal year that ended in Dec. 2014 is calculated as

	Inventory Turnover (A: Dec. 2014 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2014 )	/ (	(Total Inventories (A: Mar. 2013 )	+	Total Inventories (A: Dec. 2014 ))	/	count )
=	15590	/ (	(1423	+	1439)	/	2 )
=	15590	/	1431
=	10.89

Kokusan Denki Co's Inventory Turnover for the quarter that ended in Mar. 2015 is calculated as

	Inventory Turnover (Q: Mar. 2015 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2015 )	/ (	(Total Inventories (Q: Dec. 2014 )	+	Total Inventories (Q: Mar. 2015 ))	/	count )
=	3666	/ (	(1439	+	1692)	/	2 )
=	3666	/	1565.5
=	2.34

Kokusan Denki Co (TSE:6992) 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.

Kokusan Denki Co's Days Inventory for the three months ended in Mar. 2015 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2015 )	/	Cost of Goods Sold (Q: Mar. 2015 )	*	Days in Period
	=	1565.5	/	3666	*	365 / 4
	=	38.97

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.

Kokusan Denki Co's Inventory to Revenue for the quarter that ended in Mar. 2015 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2015 )	/	Revenue (Q: Mar. 2015 )
	=	1565.5	/	4232
	=	0.37

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.

Kokusan Denki Co Inventory Turnover Related Terms

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Kokusan Denki Co (TSE:6992) Business Description

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Website

http://www.kokusandenki.co.jp

Kokusan Denki Co Ltd is engaged in the manufacturing and selling of electrical components. Its products are Engine Ignition Systems, Electric Motors and Alternators and Welders.

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