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Solta Medical, (FRA:NZ5) Total Inventories : €16.8 Mil (As of Sep. 2013)


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What is Solta Medical, Total Inventories?

Solta Medical,'s total inventories for the quarter that ended in Sep. 2013 was €16.8 Mil. Solta Medical,'s average total inventories from the quarter that ended in Jun. 2013 to the quarter that ended in Sep. 2013 was €16.6 Mil.

In Ben Graham's calculation of Net-Net Working Capital, inventory is only considered worth half of its book value. Solta Medical,'s Net-Net Working Capital per share for the quarter that ended in Sep. 2013 was €-0.51.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Solta Medical,'s Days Inventory for the three months ended in Sep. 2013 was 140.15.

Inventory Turnover measures how fast the company turns over its inventory within a year. Solta Medical,'s Inventory Turnover for the quarter that ended in Sep. 2013 was 0.65.

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. Solta Medical,'s Inventory-to-Revenue for the quarter that ended in Sep. 2013 was 0.66.


Solta Medical, Total Inventories Historical Data

The historical data trend for Solta Medical,'s Total Inventories 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.

Solta Medical, Total Inventories Chart

Solta Medical, Annual Data
Trend Dec02 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12
Total Inventories
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.55 9.68 7.98 12.56 12.66

Solta Medical, Quarterly Data
Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13
Total Inventories Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.76 12.66 16.41 16.53 16.77

Solta Medical, Total Inventories Calculation

Total Inventories includes the raw materials, work-in-process goods and completely finished goods of a company. It is a portion of a company's current assets.


Solta Medical,  (FRA:NZ5) Total Inventories Explanation

Inventory control is an important part of business operation. If a company does not have enough inventory, it may not be able to meet customers' required delivery time. If it has too much inventory, the cost of holding the inventory can be high.

1. In Ben Graham's calculation of Net-Net Working Capital (NNWC), inventory is only considered worth half of its book value.

Solta Medical,'s Net-Net Working Capital Per Share for the quarter that ended in Sep. 2013 is

Net-Net Working Capital Per Share (Q: Sep. 2013 )
=(Cash And Cash Equivalents+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(5.74+0.75 * 15.208+0.5 * 16.766-66.129
-0-0)/79.8387
=-0.51

2. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Solta Medical,'s Days Inventory for the three months ended in Sep. 2013 is calculated as:

Days Inventory=Average Total Inventories (Q: Sep. 2013 )/Cost of Goods Sold (Q: Sep. 2013 )*Days in Period
=16.647/10.839*365 / 4
=140.15

3. Inventory Turnover measures how fast the company turns over its inventory within a year.

Solta Medical,'s Inventory Turnover for the quarter that ended in Sep. 2013 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Sep. 2013 ) / Average Total Inventories (Q: Sep. 2013 )
=10.839 / 16.647
=0.65

4. 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.

Solta Medical,'s Inventory to Revenue for the quarter that ended in Sep. 2013 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Sep. 2013 ) / Revenue (Q: Sep. 2013 )
=16.647 / 25.088
=0.66

* 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

Manufacturers with durable competitive advantages have the advantage that the products they sell do not change, and therefore will never become obsolete. Buffett likes this advantage.

When identifying manufacturers with durable competitive advantage, look for inventory and net earnings that rise correspondingly. This indicates that the company is finding profitable ways to increase sales which called for an increase in inventory.

Manufacturers with inventories that spike up and down are indicative of competitive industries subject to boom and bust.


Solta Medical, Total Inventories Related Terms

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Solta Medical, (FRA:NZ5) Business Description

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Solta Medical, Inc. was incorporated in California on January 11, 1996 as Thermage, Inc. and reincorporated in Delaware on September 10, 2001. It designs, develops, manufactures and markets energy-based medical device systems for aesthetic applications. The Company markets its systems and treatment tips in the United States to physician practices primarily through a direct sales force and internationally in over 100 countries through both a network of distributors and direct sales force. Its customers consist mainly of dermatologists and plastic surgeons and its expanded customer base includes other specialties such as general and family practitioners, gynecologists, ophthalmologists and others. These systems are marketed under the brand names Fraxel and Thermage. It currently markets four Fraxel products: The re:store, re:store Dual, re:fine and re:pair. The Fraxel re:store, Fraxel re:store Dual and Fraxel re:fine laser platforms non-ablatively treat a range of applications that include wrinkles and fine lines, pigmentation, sun damage, uneven skin texture and melasma. The Company's Thermage systems consist of a radiofrequency (RF) generator with cooling capability, through the delivery of a coolant to protect the outer layer of the skin from over-heating, and a hand piece that, in conjunction with a treatment tip, regulates epidermis cooling and monitors treatment data. Its system includes a variety of single-use, disposable treatment tips that attach to the hand piece and are selected by physicians based on the procedure to be performed and the size of the area to be treated. The Company sells its Thermage and Fraxel systems to physicians in the United States primarily through a direct sales force of trained sales consultants. Its industry is subject to intense competition. It compete directly against laser and light-based skin rejuvenation products and procedures offered by companies such as Alma Laser, Cutera, Cynosure, Lumenis, Lutronic, Palomar Medical Technologies, Sciton and Syneron Medical. In addition, it compete against existing and emerging treatment alternatives such as cosmetic surgery, chemical peels, microdermabrasion, Botox, dermal fillers and collagen injections. The Company's Thermage and Fraxel systems are medical devices and are subject to extensive and rigorous regulation by the U.S. Food and Drug Administration (FDA), as well as other federal and state regulatory bodies in the United States and laws and regulations of foreign authorities in other countries.

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