IRIS Group (XBRU:IRIS) Inventory Turnover : 8.38 (As of Jun. 2012)

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What is IRIS Group 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. IRIS Group's Cost of Goods Sold for the six months ended in Jun. 2012 was €23.86 Mil. IRIS Group's Average Total Inventories for the quarter that ended in Jun. 2012 was €2.85 Mil. IRIS Group's Inventory Turnover for the quarter that ended in Jun. 2012 was 8.38.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. IRIS Group's Days Inventory for the six months ended in Jun. 2012 was 21.78.

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. IRIS Group's Inventory-to-Revenue for the quarter that ended in Jun. 2012 was 0.06.

IRIS Group Inventory Turnover Historical Data

The historical data trend for IRIS Group'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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IRIS Group Inventory Turnover Chart

IRIS Group Annual Data

Trend

Dec02

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Inventory Turnover

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49.91

22.14

11.26

19.96

30.36

IRIS Group Semi-Annual Data
	Dec11	Jun12
Inventory Turnover	13.10	8.38

IRIS Group Inventory Turnover Calculation

IRIS Group's Inventory Turnover for the fiscal year that ended in Dec. 2011 is calculated as

	Inventory Turnover (A: Dec. 2011 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2011 )	/ (	(Total Inventories (A: Dec. 2010 )	+	Total Inventories (A: Dec. 2011 ))	/	count )
=	81.372	/ (	(2.636	+	2.725)	/	2 )
=	81.372	/	2.6805
=	30.36

IRIS Group's Inventory Turnover for the quarter that ended in Jun. 2012 is calculated as

	Inventory Turnover (Q: Jun. 2012 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jun. 2012 )	/ (	(Total Inventories (Q: Dec. 2011 )	+	Total Inventories (Q: Jun. 2012 ))	/	count )
=	23.859	/ (	(2.725	+	2.969)	/	2 )
=	23.859	/	2.847
=	8.38

IRIS Group (XBRU:IRIS) 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.

IRIS Group's Days Inventory for the six months ended in Jun. 2012 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jun. 2012 )	/	Cost of Goods Sold (Q: Jun. 2012 )	*	Days in Period
	=	2.847	/	23.859	*	365 / 2
	=	21.78

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.

IRIS Group's Inventory to Revenue for the quarter that ended in Jun. 2012 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jun. 2012 )	/	Revenue (Q: Jun. 2012 )
	=	2.847	/	44.241
	=	0.06

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.

IRIS Group Inventory Turnover Related Terms

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IRIS Group (XBRU:IRIS) Business Description

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