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7days Music Entertainment AG (XTER:7DM1) Inventory Turnover : 4.38 (As of Dec. 2012)


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What is 7days Music Entertainment AG 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. 7days Music Entertainment AG's Cost of Goods Sold for the six months ended in Dec. 2012 was €2.64 Mil. 7days Music Entertainment AG's Average Total Inventories for the quarter that ended in Dec. 2012 was €0.60 Mil. 7days Music Entertainment AG's Inventory Turnover for the quarter that ended in Dec. 2012 was 4.38.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. 7days Music Entertainment AG's Days Inventory for the six months ended in Dec. 2012 was 41.62.

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. 7days Music Entertainment AG's Inventory-to-Revenue for the quarter that ended in Dec. 2012 was 0.21.

7days Music Entertainment AG Inventory Turnover Historical Data

The historical data trend for 7days Music Entertainment AG'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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7days Music Entertainment AG Inventory Turnover Chart

7days Music Entertainment AG Annual Data
Trend Dec09 Dec10 Dec11 Dec12
Inventory Turnover
7.07 3.84 3.98 4.38

7days Music Entertainment AG Semi-Annual Data
Dec09 Dec10 Dec11 Dec12
Inventory Turnover 7.07 3.84 3.98 4.38

7days Music Entertainment AG Inventory Turnover Calculation

7days Music Entertainment AG's Inventory Turnover for the fiscal year that ended in Dec. 2012 is calculated as

Inventory Turnover (A: Dec. 2012 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2012 ) / ((Total Inventories (A: Dec. 2011 ) + Total Inventories (A: Dec. 2012 )) / count )
=2.644 / ((0.918 + 0.288) / 2 )
=2.644 / 0.603
=4.38

7days Music Entertainment AG's Inventory Turnover for the quarter that ended in Dec. 2012 is calculated as

Inventory Turnover (Q: Dec. 2012 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Dec. 2012 ) / ((Total Inventories (Q: Dec. 2011 ) + Total Inventories (Q: Dec. 2012 )) / count )
=2.644 / ((0.918 + 0.288) / 2 )
=2.644 / 0.603
=4.38

* 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.

7days Music Entertainment AG  (XTER:7DM1) 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.

7days Music Entertainment AG's Days Inventory for the six months ended in Dec. 2012 is calculated as:

Days Inventory =Average Total Inventories (Q: Dec. 2012 )/Cost of Goods Sold (Q: Dec. 2012 )*Days in Period
=0.603/2.644*365 / 2
=41.62

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.

7days Music Entertainment AG's Inventory to Revenue for the quarter that ended in Dec. 2012 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Dec. 2012 ) / Revenue (Q: Dec. 2012 )
=0.603 / 2.906
=0.21

* 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.

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.

7days Music Entertainment AG Inventory Turnover Related Terms

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7days Music Entertainment AG (XTER:7DM1) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » 7days Music Entertainment AG (XTER:7DM1) » Definitions » Inventory Turnover
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Traded in Other Exchanges
N/A
Address
Website
http://www.7daysmusic.de
7days Music Entertainment AG is engaged in music and entertainment industry, which includes marketing and sales of music CD, DVD, advertising, artiste management and mobile ring tones.

7days Music Entertainment AG (XTER:7DM1) Headlines

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