Max Petroleum (LSE:MXP) Total Inventories: £3.75 Mil (As of Sep. 2014)


What is Max Petroleum Total Inventories?

Max Petroleum LSE:MXP Total Inventories is £3.75 Mil as of Sep. 2014. The stock has 6 warning signs investors should review.

Max Petroleum's total inventories for the quarter that ended in Sep. 2014 was £3.75 Mil. Max Petroleum's average total inventories from the quarter that ended in Mar. 2014 to the quarter that ended in Sep. 2014 was £3.53 Mil.

In Ben Graham's calculation of Net-Net Working Capital, inventory is only considered worth half of its book value. Max Petroleum's Net-Net Working Capital per share for the quarter that ended in Sep. 2014 was £-0.04.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Max Petroleum's Days Inventory for the six months ended in Sep. 2014 was 27.93.

Inventory Turnover measures how fast the company turns over its inventory within a year. Max Petroleum's Inventory Turnover for the quarter that ended in Sep. 2014 was 6.53.

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. Max Petroleum's Inventory-to-Revenue for the quarter that ended in Sep. 2014 was 0.11.

Max Petroleum  (LSE:MXP) 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.

Max Petroleum's Net-Net Working Capital Per Share for the quarter that ended in Sep. 2014 is

Net-Net Working Capital Per Share (Q: Sep. 2014 )
=(Cash And Cash Equivalents+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(2.263+0.75 * 0+0.5 * 3.746-88.226
-0-0)/2175.310
=-0.04

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

Max Petroleum's Days Inventory for the six months ended in Sep. 2014 is calculated as:

Days Inventory=Average Total Inventories (Q: Sep. 2014 )/Cost of Goods Sold (Q: Sep. 2014 )*Days in Period
=3.53/23.066*365 / 2
=27.93

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

Max Petroleum's Inventory Turnover for the quarter that ended in Sep. 2014 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Sep. 2014 ) / Average Total Inventories (Q: Sep. 2014 )
=23.066 / 3.53
=6.53

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.

Max Petroleum's Inventory to Revenue for the quarter that ended in Sep. 2014 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Sep. 2014 ) / Revenue (Q: Sep. 2014 )
=3.53 / 33.225
=0.11

* 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.

Max Petroleum Total Inventories Related Terms

Max Petroleum Total Inventories Historical Data

* Premium members only.

The historical data trend for Max Petroleum'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.

Max Petroleum Total Inventories Chart

Max Petroleum Annual Data
Trend Mar06 Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14
Total Inventories
Get a 7-Day Free Trial Premium Member Only 8.63 8.21 8.00 2.73 3.31

Max Petroleum Semi-Annual Data
Sep06 Mar07 Sep07 Mar08 Sep08 Mar09 Sep09 Mar10 Sep10 Mar11 Sep11 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14
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 6.59 2.73 3.40 3.31 3.75

Max Petroleum 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.

Frequently Asked Questions Learn more about Total Inventories →
What does a Total Inventories of £3.75 Mil mean?
Max Petroleum (LSE:MXP) has a Total Inventories of £3.75 Mil as of Sep. 2014. The total amount of inventory as recorded on a company's balance sheet. View historical data for Max Petroleum and its competitors.
Is Max Petroleum's Total Inventories too high?
Max Petroleum's current Total Inventories is £3.75 Mil.
How does Max Petroleum's Total Inventories compare to competitors?
Max Petroleum's Total Inventories of £3.75 Mil can be compared against companies in the Oil & Gas industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Total Inventories for an Oil & Gas company?
A good Total Inventories depends on the Oil & Gas industry context. However, Total Inventories should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Total Inventories mean?
A high Total Inventories can signal that a stock is expensive relative to its fundamentals. The total amount of inventory as recorded on a company's balance sheet. View historical data for Max Petroleum and its competitors. Max Petroleum's current Total Inventories is £3.75 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Max Petroleum stock overvalued right now?
Max Petroleum (LSE:MXP) has a current Total Inventories of £3.75 Mil. The current Total Inventories is £3.75 Mil. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Total Inventories calculated?
Total Inventories is calculated from a company's financial statements. For Max Petroleum (LSE:MXP), the current Total Inventories is £3.75 Mil as of Sep. 2014. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Max Petroleum Business Description

Industry EnergyOil & Gas
Address 4th Floor, Ergon House, Dean Bradley Street, London, GBR, SW1P 2AL
Max Petroleum Plc is an independent oil and gas exploration and production company. The company is engaged in the business of exploration, development, and production of oil and gas assets within the Republic of Kazakhstan. The group owns the exploration and production rights to the Blocks A&E License, which comprises two onshore blocks extending over 12,455 km2 in the Pre-Caspian Basin in Western Kazakhstan.