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HCLC (Health-Chem) Total Inventories : $0.84 Mil (As of Jun. 2007)


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What is Health-Chem Total Inventories?

Health-Chem's total inventories for the quarter that ended in Jun. 2007 was $0.84 Mil. Health-Chem's average total inventories from the quarter that ended in Mar. 2007 to the quarter that ended in Jun. 2007 was $0.83 Mil.

In Ben Graham's calculation of Net-Net Working Capital, inventory is only considered worth half of its book value. Health-Chem's Net-Net Working Capital per share for the quarter that ended in Jun. 2007 was $-1.39.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Health-Chem's Days Inventory for the three months ended in Jun. 2007 was 48.79.

Inventory Turnover measures how fast the company turns over its inventory within a year. Health-Chem's Inventory Turnover for the quarter that ended in Jun. 2007 was 1.87.

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. Health-Chem's Inventory-to-Revenue for the quarter that ended in Jun. 2007 was 0.75.

Health-Chem Total Inventories Historical Data

The historical data trend for Health-Chem'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.

Health-Chem Total Inventories Chart

Health-Chem Annual Data
Trend Dec91 Dec92 Dec93 Dec94 Dec95 Dec96 Dec97 Dec04 Dec05 Dec06
Total Inventories
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.30 7.50 1.30 1.17 0.94

Health-Chem Quarterly Data
Sep95 Dec95 Mar96 Jun96 Sep96 Dec96 Mar97 Jun97 Sep97 Dec97 Mar98 Jun98 Sep98 Dec04 Dec05 Mar06 Jun06 Dec06 Mar07 Jun07
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 - - 0.94 0.83 0.84

Health-Chem 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.

Health-Chem  (OTCPK:HCLC) 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.

Health-Chem's Net-Net Working Capital Per Share for the quarter that ended in Jun. 2007 is

Net-Net Working Capital Per Share (Q: Jun. 2007 )
=(Cash And Cash Equivalents+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(1.854+0.75 * 1.065+0.5 * 0.837-21.968
-0-0.003)/13.5879
=-1.39

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

Health-Chem's Days Inventory for the three months ended in Jun. 2007 is calculated as:

Days Inventory=Average Total Inventories (Q: Jun. 2007 )/Cost of Goods Sold (Q: Jun. 2007 )*Days in Period
=0.8315/1.555*365 / 4
=48.79

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

Health-Chem's Inventory Turnover for the quarter that ended in Jun. 2007 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Jun. 2007 ) / Average Total Inventories (Q: Jun. 2007 )
=1.555 / 0.8315
=1.87

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.

Health-Chem's Inventory to Revenue for the quarter that ended in Jun. 2007 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Jun. 2007 ) / Revenue (Q: Jun. 2007 )
=0.8315 / 1.105
=0.75

* 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.

Health-Chem Total Inventories Related Terms

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