Shengkai Innovations (Shengkai Innovations) Inventory Turnover : 0.89 (As of Mar. 2013)

View and export this data going back to 2006. Start your Free Trial

What is Shengkai Innovations 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. Shengkai Innovations's Cost of Goods Sold for the three months ended in Mar. 2013 was $2.16 Mil. Shengkai Innovations's Average Total Inventories for the quarter that ended in Mar. 2013 was $2.42 Mil. Shengkai Innovations's Inventory Turnover for the quarter that ended in Mar. 2013 was 0.89.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Shengkai Innovations's Days Inventory for the three months ended in Mar. 2013 was 102.18.

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. Shengkai Innovations's Inventory-to-Revenue for the quarter that ended in Mar. 2013 was 0.82.

Shengkai Innovations Inventory Turnover Historical Data

The historical data trend for Shengkai Innovations'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.

Shengkai Innovations Inventory Turnover Chart

Shengkai Innovations Annual Data

Trend

Dec05

Dec06

Dec07

Jun08

Jun09

Jun10

Jun11

Jun12

Inventory Turnover

Get a 7-Day Free Trial

36.40

18.70

12.65

15.85

6.94

Shengkai Innovations Quarterly Data
	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13
Inventory Turnover	Get a 7-Day Free Trial															1.08	1.10	1.09	0.99	0.89

Shengkai Innovations Inventory Turnover Calculation

Shengkai Innovations's Inventory Turnover for the fiscal year that ended in Jun. 2012 is calculated as

	Inventory Turnover (A: Jun. 2012 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jun. 2012 )	/ (	(Total Inventories (A: Jun. 2011 )	+	Total Inventories (A: Jun. 2012 ))	/	count )
=	18.342	/ (	(2.532	+	2.751)	/	2 )
=	18.342	/	2.6415
=	6.94

Shengkai Innovations's Inventory Turnover for the quarter that ended in Mar. 2013 is calculated as

	Inventory Turnover (Q: Mar. 2013 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2013 )	/ (	(Total Inventories (Q: Dec. 2012 )	+	Total Inventories (Q: Mar. 2013 ))	/	count )
=	2.158	/ (	(2.49	+	2.343)	/	2 )
=	2.158	/	2.4165
=	0.89

Shengkai Innovations (OTCPK:VALV) 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.

Shengkai Innovations's Days Inventory for the three months ended in Mar. 2013 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2013 )	/	Cost of Goods Sold (Q: Mar. 2013 )	*	Days in Period
	=	2.4165	/	2.158	*	365 / 4
	=	102.18

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.

Shengkai Innovations's Inventory to Revenue for the quarter that ended in Mar. 2013 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2013 )	/	Revenue (Q: Mar. 2013 )
	=	2.4165	/	2.962
	=	0.82

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.

Shengkai Innovations Inventory Turnover Related Terms

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

Shengkai Innovations (Shengkai Innovations) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Distribution » Shengkai Innovations Inc (OTCPK:VALV) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

No.106, Zhonghuan South Road, Airport Industrial Park, Tianjin, CHN, 300308

Website

http://www.shengkaiinnovations.com

Shengkai Innovations Inc is a ceramic valve manufacturer with operations in the People's Republic of China.

Executives

Ming He	officer: Chief Financial Officer	NO. 106 ZHONGHUAN SOUTH ROAD, AIRPORT INDUSTRIAL PARK, TIANJIN F4 300308
Martin A. Sumichrast	10 percent owner	11125 COLONIAL COUNTRY LANE, CHARLOTTE NC 28277

Shengkai Innovations (Shengkai Innovations) Headlines

No Headlines