Functional Technologies (TSXV:FEB.H) Inventory Turnover : 0.79 (As of Aug. 2012)

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What is Functional Technologies 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. Functional Technologies's Cost of Goods Sold for the six months ended in Aug. 2012 was C$0.26 Mil. Functional Technologies's Average Total Inventories for the quarter that ended in Aug. 2012 was C$0.32 Mil. Functional Technologies's Inventory Turnover for the quarter that ended in Aug. 2012 was 0.79.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Functional Technologies's Days Inventory for the six months ended in Aug. 2012 was 230.45.

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. Functional Technologies's Inventory-to-Revenue for the quarter that ended in Aug. 2012 was 1.83.

Functional Technologies Inventory Turnover Historical Data

The historical data trend for Functional Technologies'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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Functional Technologies Inventory Turnover Chart

Functional Technologies Annual Data

Trend

Aug03

Aug04

Aug05

Aug06

Aug07

Aug08

Aug09

Aug10

Aug11

Aug12

Inventory Turnover

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0.25

0.52

0.79

Functional Technologies Semi-Annual Data
	Aug01	Aug02	Aug03	Aug04	Aug05	Aug06	Aug07	Aug08	Aug09	Aug10	Aug11	Aug12
Inventory Turnover	Get a 7-Day Free Trial							-	-	0.25	0.52	0.79

Functional Technologies Inventory Turnover Calculation

Functional Technologies's Inventory Turnover for the fiscal year that ended in Aug. 2012 is calculated as

	Inventory Turnover (A: Aug. 2012 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Aug. 2012 )	/ (	(Total Inventories (A: Aug. 2011 )	+	Total Inventories (A: Aug. 2012 ))	/	count )
=	0.255	/ (	(0.322	+	0)	/	1 )
=	0.255	/	0.322
=	0.79

Functional Technologies's Inventory Turnover for the quarter that ended in Aug. 2012 is calculated as

	Inventory Turnover (Q: Aug. 2012 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Aug. 2012 )	/ (	(Total Inventories (Q: Aug. 2011 )	+	Total Inventories (Q: Aug. 2012 ))	/	count )
=	0.255	/ (	(0.322	+	0)	/	1 )
=	0.255	/	0.322
=	0.79

Functional Technologies (TSXV:FEB.H) 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.

Functional Technologies's Days Inventory for the six months ended in Aug. 2012 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Aug. 2012 )	/	Cost of Goods Sold (Q: Aug. 2012 )	*	Days in Period
	=	0.322	/	0.255	*	365 / 2
	=	230.45

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.

Functional Technologies's Inventory to Revenue for the quarter that ended in Aug. 2012 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Aug. 2012 )	/	Revenue (Q: Aug. 2012 )
	=	0.322	/	0.176
	=	1.83

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.

Functional Technologies Inventory Turnover Related Terms

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Functional Technologies (TSXV:FEB.H) Business Description

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Website

http://www.firstventuretech.com

Functional Technologies Corp is incorporated under the corporate laws of British Columbia, Canada on October 18, 1999. The Company is a functional foods and biological health products company that is developing and commercializing advanced yeast products and other novel biological products for the food and health care industry. The company develops and commercializes proprietary, advanced yeast-based solutions to significant challenges in the food, beverage and healthcare industries, for which viable solutions are lacking. The Company's platform technologies improve the performance of innate yeast functions to primarily prevent the formation of naturally occurring toxins and contaminants that either affect final product quality or are classified by various global agencies as dangerous substances (e.g. carcinogens, neurotoxicants or reproductive toxicants). The Company operates in three geographic regions: Canada, Europe and the United States.

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