Trinidad Drilling (TSX:TDG) Inventory Turnover : 16.36 (As of Sep. 2018)

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What is Trinidad Drilling 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. Trinidad Drilling's Cost of Goods Sold for the three months ended in Sep. 2018 was C$105.2 Mil. Trinidad Drilling's Average Total Inventories for the quarter that ended in Sep. 2018 was C$6.4 Mil. Trinidad Drilling's Inventory Turnover for the quarter that ended in Sep. 2018 was 16.36.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Trinidad Drilling's Days Inventory for the three months ended in Sep. 2018 was 5.58.

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. Trinidad Drilling's Inventory-to-Revenue for the quarter that ended in Sep. 2018 was 0.04.

Trinidad Drilling Inventory Turnover Historical Data

The historical data trend for Trinidad Drilling'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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Trinidad Drilling Inventory Turnover Chart

Trinidad Drilling Annual Data

Trend

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Inventory Turnover

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60.45

32.88

17.94

26.93

49.62

Trinidad Drilling Quarterly Data
	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18
Inventory Turnover	Get a 7-Day Free Trial															14.43	14.88	26.36	13.53	16.36

Trinidad Drilling Inventory Turnover Calculation

Trinidad Drilling's Inventory Turnover for the fiscal year that ended in Dec. 2017 is calculated as

	Inventory Turnover (A: Dec. 2017 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2017 )	/ (	(Total Inventories (A: Dec. 2016 )	+	Total Inventories (A: Dec. 2017 ))	/	count )
=	344.295	/ (	(7.907	+	5.971)	/	2 )
=	344.295	/	6.939
=	49.62

Trinidad Drilling's Inventory Turnover for the quarter that ended in Sep. 2018 is calculated as

	Inventory Turnover (Q: Sep. 2018 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2018 )	/ (	(Total Inventories (Q: Jun. 2018 )	+	Total Inventories (Q: Sep. 2018 ))	/	count )
=	105.154	/ (	(7.255	+	5.599)	/	2 )
=	105.154	/	6.427
=	16.36

Trinidad Drilling (TSX:TDG) 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.

Trinidad Drilling's Days Inventory for the three months ended in Sep. 2018 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2018 )	/	Cost of Goods Sold (Q: Sep. 2018 )	*	Days in Period
	=	6.427	/	105.154	*	365 / 4
	=	5.58

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.

Trinidad Drilling's Inventory to Revenue for the quarter that ended in Sep. 2018 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2018 )	/	Revenue (Q: Sep. 2018 )
	=	6.427	/	174.792
	=	0.04

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.

Trinidad Drilling Inventory Turnover Related Terms

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Trinidad Drilling (TSX:TDG) Business Description

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Address

Website

http://www.trinidaddrilling.com

Trinidad Drilling Ltd is a Canadian company which is engaged in providing drilling services to the oil and natural gas industry. The company's operating segments are Canadian operations which include land drilling services; US and international operations which include land and barge drilling services located in both the US and international markets, excluding all joint venture operations; Joint venture operations which include all international joint venture operations; and Manufacturing operations include manufacturing work performed in each of the Canadian and US manufacturing divisions. The majority of the company's revenue comes from oilfield services.