Norseman Gold (LSE:NGL) Total Inventories : £1.18 Mil (As of Jun. 2014)

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What is Norseman Gold Total Inventories?

Norseman Gold's total inventories for the quarter that ended in Jun. 2014 was £1.18 Mil. Norseman Gold's average total inventories from the quarter that ended in Jun. 2013 to the quarter that ended in Jun. 2014 was £1.25 Mil.

In Ben Graham's calculation of Net-Net Working Capital, inventory is only considered worth half of its book value. Norseman Gold's Net-Net Working Capital per share for the quarter that ended in Jun. 2014 was £-0.14.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Norseman Gold's Days Inventory for the six months ended in Jun. 2014 was 20.69.

Inventory Turnover measures how fast the company turns over its inventory within a year. Norseman Gold's Inventory Turnover for the quarter that ended in Jun. 2014 was 8.82.

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. Norseman Gold's Inventory-to-Revenue for the quarter that ended in Jun. 2014 was 0.10.

Norseman Gold Total Inventories Historical Data

The historical data trend for Norseman Gold'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.

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Norseman Gold Total Inventories Chart

Norseman Gold Annual Data

Trend

Jun09

Jun10

Jun11

Jun12

Jun13

Jun14

Total Inventories

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4.24

4.63

2.37

1.32

1.18

Norseman Gold Semi-Annual Data
	Jun09	Jun10	Jun11	Jun12	Jun13	Jun14
Total Inventories	Get a 7-Day Free Trial			4.24	4.63	2.37	1.32	1.18

Norseman Gold 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.

Norseman Gold (LSE:NGL) 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.

Norseman Gold's Net-Net Working Capital Per Share for the quarter that ended in Jun. 2014 is

	Net-Net Working Capital Per Share (Q: Jun. 2014 )
=	(Cash And Cash Equivalents	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(0.718	+	0.75 * 0	+	0.5 * 1.177	-	56.511
-	0	-	0)	/	405.510
=	-0.14

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

Norseman Gold's Days Inventory for the six months ended in Jun. 2014 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jun. 2014 )	/	Cost of Goods Sold (Q: Jun. 2014 )	*	Days in Period
	=	1.2495	/	11.022	*	365 / 2
	=	20.69

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

Norseman Gold's Inventory Turnover for the quarter that ended in Jun. 2014 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Jun. 2014 )	/	Average Total Inventories (Q: Jun. 2014 )
	=	11.022	/	1.2495
	=	8.82

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.

Norseman Gold's Inventory to Revenue for the quarter that ended in Jun. 2014 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jun. 2014 )	/	Revenue (Q: Jun. 2014 )
	=	1.2495	/	12.895
	=	0.10

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.

Norseman Gold Total Inventories Related Terms

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Norseman Gold (LSE:NGL) Business Description

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http://www.norsemangoldplc.com

Norseman Gold PLC is engaged in the production, exploration, evaluation and development of mineral resources. It is involved in the operation of Central Norseman Gold Corporation Ltd (the Norseman Project). The Norseman Project is located adjacent to the Norseman township, approximately 725 kilometres east of Perth, Western Australia. Current operations source ore from the Bullen underground mine and the Harlequin underground mine using underground mining methods of airleg up dip room and pillar stoping and long-hole stoping.