Chemtura (XPAR:CHMT) Inventory Turnover : 0.90 (As of Dec. 2016)

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What is Chemtura 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. Chemtura's Cost of Goods Sold for the three months ended in Dec. 2016 was €262.60 Mil. Chemtura's Average Total Inventories for the quarter that ended in Dec. 2016 was €293.06 Mil. Chemtura's Inventory Turnover for the quarter that ended in Dec. 2016 was 0.90.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Chemtura's Days Inventory for the three months ended in Dec. 2016 was 101.84.

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. Chemtura's Inventory-to-Revenue for the quarter that ended in Dec. 2016 was 0.80.

Chemtura Inventory Turnover Historical Data

The historical data trend for Chemtura'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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Chemtura Inventory Turnover Chart

Chemtura Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Inventory Turnover

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3.79

4.52

5.25

4.33

3.84

Chemtura Quarterly Data
	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16
Inventory Turnover	Get a 7-Day Free Trial															0.95	0.90	1.00	0.90	0.90

Chemtura Inventory Turnover Calculation

Chemtura's Inventory Turnover for the fiscal year that ended in Dec. 2016 is calculated as

	Inventory Turnover (A: Dec. 2016 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2016 )	/ (	(Total Inventories (A: Dec. 2015 )	+	Total Inventories (A: Dec. 2016 ))	/	count )
=	1119.588	/ (	(289.17	+	293.88)	/	2 )
=	1119.588	/	291.525
=	3.84

Chemtura's Inventory Turnover for the quarter that ended in Dec. 2016 is calculated as

	Inventory Turnover (Q: Dec. 2016 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2016 )	/ (	(Total Inventories (Q: Sep. 2016 )	+	Total Inventories (Q: Dec. 2016 ))	/	count )
=	262.596	/ (	(292.248	+	293.88)	/	2 )
=	262.596	/	293.064
=	0.90

Chemtura (XPAR:CHMT) 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.

Chemtura's Days Inventory for the three months ended in Dec. 2016 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2016 )	/	Cost of Goods Sold (Q: Dec. 2016 )	*	Days in Period
	=	293.064	/	262.596	*	365 / 4
	=	101.84

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.

Chemtura's Inventory to Revenue for the quarter that ended in Dec. 2016 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2016 )	/	Revenue (Q: Dec. 2016 )
	=	293.064	/	364.98
	=	0.80

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.

Chemtura Inventory Turnover Related Terms

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Chemtura Business Description

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Address

Website

http://www.chemtura.com

Chemtura manufactures and sells a variety of chemicals, which include lubricants and bromine. The company organizes itself into two segments based on product type. The industrial performance products segment, which generates most of Chemtura's revenue, sells synthetic lubricants and specialty greases that reduce friction for engines and machines. These products are typically sold to the automotive, aviation, marine, and refrigeration industries. The industrial engineered products segment sells a variety of bromine-based products, which include brominated flame retardants for consumer electronics, oil and gas drilling fluids, and pesticides for the agricultural industry. More revenue comes from North America than any other region.

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