Lafarge (XSWX:LG) Inventory Turnover : 1.67 (As of Jun. 2015)

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

What is Lafarge 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. Lafarge's Cost of Goods Sold for the three months ended in Jun. 2015 was CHF2,737 Mil. Lafarge's Average Total Inventories for the quarter that ended in Jun. 2015 was CHF1,636 Mil. Lafarge's Inventory Turnover for the quarter that ended in Jun. 2015 was 1.67.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Lafarge's Days Inventory for the three months ended in Jun. 2015 was 54.54.

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. Lafarge's Inventory-to-Revenue for the quarter that ended in Jun. 2015 was 0.44.

Lafarge Inventory Turnover Historical Data

The historical data trend for Lafarge'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.

Lafarge Inventory Turnover Chart

Lafarge Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Inventory Turnover

Get a 7-Day Free Trial

6.00

7.16

7.42

6.48

6.72

Lafarge Quarterly Data
	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15
Inventory Turnover	Get a 7-Day Free Trial															1.70	1.77	1.64	1.38	1.67

Lafarge Inventory Turnover Calculation

Lafarge's Inventory Turnover for the fiscal year that ended in Dec. 2014 is calculated as

	Inventory Turnover (A: Dec. 2014 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2014 )	/ (	(Total Inventories (A: Dec. 2013 )	+	Total Inventories (A: Dec. 2014 ))	/	count )
=	11831.075	/ (	(1743.771	+	1775.022)	/	2 )
=	11831.075	/	1759.3965
=	6.72

Lafarge's Inventory Turnover for the quarter that ended in Jun. 2015 is calculated as

	Inventory Turnover (Q: Jun. 2015 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jun. 2015 )	/ (	(Total Inventories (Q: Mar. 2015 )	+	Total Inventories (Q: Jun. 2015 ))	/	count )
=	2736.671	/ (	(1742.22	+	1529.439)	/	2 )
=	2736.671	/	1635.8295
=	1.67

Lafarge (XSWX:LG) 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.

Lafarge's Days Inventory for the three months ended in Jun. 2015 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jun. 2015 )	/	Cost of Goods Sold (Q: Jun. 2015 )	*	Days in Period
	=	1635.8295	/	2736.671	*	365 / 4
	=	54.54

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.

Lafarge's Inventory to Revenue for the quarter that ended in Jun. 2015 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jun. 2015 )	/	Revenue (Q: Jun. 2015 )
	=	1635.8295	/	3703.293
	=	0.44

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.

Lafarge Inventory Turnover Related Terms

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

Lafarge (XSWX:LG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » Lafarge SA (XSWX:LG) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.lafarge.com

Lafarge SA is a French limited liability company governed by French law and was founded in France in 1833 and was incorporated in 1884 under the name "J. et A. Pavin de Lafarge". The Company provides building materials. It is engaged in producing & selling cement, aggregates and ready-mix concrete, mostly under the "Lafarge" brand name. Its building products and solutions are used to construct and renovate homes, buildings and infrastructures. At year-end 2013, Company cement production operated, in 56 countries, 113 cement plants and 42 grinding plants, with an annual production capacity of 221 million tons. It also manages cement trading activities. The Company aggregates and concrete are used as raw materials for concrete, masonry, asphalt, and other industrial processes, and as base materials for roads, landï¬lls, and building. As of December 31, 2013, Company had approximately 437 production facilities for aggregates in 23 countries. The Company's Ready-mix concrete had 1,026 concrete plants in 33 countries as of December 31, 2014. The Company also produces asphalt in North America and the United Kingdom, and sells either as a stand-alone product, or in conjunction with contracted paving. The Company operates in Western Europe, North America, Central & Eastern Europe, Middle East & Africa, and Asia.

Lafarge (XSWX:LG) Headlines

No Headlines