GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Lonrho PLC (LSE:LONR) » Definitions » Total Inventories

Lonrho (LSE:LONR) Total Inventories : £23.1 Mil (As of Dec. 2012)


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

What is Lonrho Total Inventories?

Lonrho's total inventories for the quarter that ended in Dec. 2012 was £23.1 Mil. Lonrho's average total inventories from the quarter that ended in Jun. 2012 to the quarter that ended in Dec. 2012 was £22.3 Mil.

In Ben Graham's calculation of Net-Net Working Capital, inventory is only considered worth half of its book value. Lonrho's Net-Net Working Capital per share for the quarter that ended in Dec. 2012 was £-0.08.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Lonrho's Days Inventory for the six months ended in Dec. 2012 was 73.33.

Inventory Turnover measures how fast the company turns over its inventory within a year. Lonrho's Inventory Turnover for the quarter that ended in Dec. 2012 was 2.49.

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. Lonrho's Inventory-to-Revenue for the quarter that ended in Dec. 2012 was 0.27.


Lonrho Total Inventories Historical Data

The historical data trend for Lonrho'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.

Lonrho Total Inventories Chart

Lonrho Annual Data
Trend Sep03 Sep04 Sep05 Sep06 Sep07 Sep08 Sep09 Sep10 Sep11 Dec12
Total Inventories
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.20 3.40 4.90 - 23.10

Lonrho Semi-Annual Data
Mar02 Sep02 Mar03 Sep03 Mar05 Sep05 Mar06 Sep06 Mar07 Sep07 Mar08 Sep08 Mar09 Sep09 Mar10 Sep10 Mar11 Sep11 Jun12 Dec12
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 4.90 6.70 11.70 21.50 23.10

Lonrho 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.


Lonrho  (LSE:LONR) 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.

Lonrho's Net-Net Working Capital Per Share for the quarter that ended in Dec. 2012 is

Net-Net Working Capital Per Share (Q: Dec. 2012 )
=(Cash And Cash Equivalents+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(17+0.75 * 27.3+0.5 * 23.1-154.3
-0-23.7)/1579.712
=-0.08

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

Lonrho'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
=22.3/55.5*365 / 2
=73.33

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

Lonrho's Inventory Turnover for the quarter that ended in Dec. 2012 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Dec. 2012 ) / Average Total Inventories (Q: Dec. 2012 )
=55.5 / 22.3
=2.49

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.

Lonrho'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 )
=22.3 / 83.6
=0.27

* 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.


Lonrho Total Inventories Related Terms

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


Lonrho (LSE:LONR) Business Description

Traded in Other Exchanges
N/A
Address
Level 2, 25 Berkeley Square, London, GBR, W1J 6HB
Lonrho PLC is engaged in providing the infrastructure and services required for the growing oil, mineral and agricultural sectors in Africa. The Company has a diverse portfolio of investments across Sub-Saharan Africa in four core operating sectors: Agribusiness, Infrastructure, Hotels and Support Services. Agribusiness vertically integrates the production, sourcing, logistics, processing and distribution of agricultural products from Sub-Saharan Africa to the consumer. The division supplies to its retailers in Sub-Saharan Africa, Europe, the USA, Middle East, Scandinavia and the Far East. The division also distributes agricultural and heavy machinery. Infrastructure division develops and manages oil logistics terminals. Luba Freeport, the oil service terminal in the Gulf of Guinea, has attracted oil service companies to be long term tenants at the port to service offshore exploration and production rigs. The Company's Hotel division includes hotels centred on the commercial, conference and business related markets across the Continent. It owns or manages hotels in Lubumbashi and Kinshasa in the Democratic Republic of the Congo, Maputo in Mozambique, Gaborone in Botswana and Mutare in Zimbabwe. IT business is a full systems integrator and manager that designs, builds, develops and integrates IT solutions for large corporate clients, banks and governments and then undertakes management contracts to run and manage installations. The IT division is a distributor for Cisco, Microsoft, Dell and Hewlett Packard systems and equipment.

Lonrho (LSE:LONR) Headlines

No Headlines