Lizhan Environmental (Lizhan Environmental) Total Inventories : $16.64 Mil (As of Mar. 2012)

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What is Lizhan Environmental Total Inventories?

Lizhan Environmental's total inventories for the quarter that ended in Mar. 2012 was $16.64 Mil. Lizhan Environmental's average total inventories from the quarter that ended in Sep. 2011 to the quarter that ended in Mar. 2012 was $14.83 Mil.

In Ben Graham's calculation of Net-Net Working Capital, inventory is only considered worth half of its book value. Lizhan Environmental's Net-Net Working Capital per share for the quarter that ended in Mar. 2012 was $-2.16.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Lizhan Environmental's Days Inventory for the three months ended in Mar. 2012 was 289.88.

Inventory Turnover measures how fast the company turns over its inventory within a year. Lizhan Environmental's Inventory Turnover for the quarter that ended in Mar. 2012 was 0.31.

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. Lizhan Environmental's Inventory-to-Revenue for the quarter that ended in Mar. 2012 was 2.81.

Lizhan Environmental Total Inventories Historical Data

The historical data trend for Lizhan Environmental'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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Lizhan Environmental Total Inventories Chart

Lizhan Environmental Annual Data

Trend

Sep08

Sep09

Sep10

Sep11

Total Inventories

1.55

3.47

4.67

13.01

Lizhan Environmental Quarterly Data
	Sep08	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Mar12
Total Inventories	Get a 7-Day Free Trial							6.12	10.46	12.60	13.01	16.64

Lizhan Environmental 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.

Lizhan Environmental (OTCPK:LZENF) 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.

Lizhan Environmental's Net-Net Working Capital Per Share for the quarter that ended in Mar. 2012 is

	Net-Net Working Capital Per Share (Q: Mar. 2012 )
=	(Cash And Cash Equivalents	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(0.503	+	0.75 * 4.191	+	0.5 * 16.643	-	41.172
-	0	-	0.29)	/	13.6438
=	-2.16

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

Lizhan Environmental's Days Inventory for the three months ended in Mar. 2012 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2012 )	/	Cost of Goods Sold (Q: Mar. 2012 )	*	Days in Period
	=	14.826	/	4.667	*	365 / 4
	=	289.88

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

Lizhan Environmental's Inventory Turnover for the quarter that ended in Mar. 2012 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Mar. 2012 )	/	Average Total Inventories (Q: Mar. 2012 )
	=	4.667	/	14.826
	=	0.31

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.

Lizhan Environmental's Inventory to Revenue for the quarter that ended in Mar. 2012 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2012 )	/	Revenue (Q: Mar. 2012 )
	=	14.826	/	5.272
	=	2.81

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.

Lizhan Environmental Total Inventories Related Terms

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Lizhan Environmental (Lizhan Environmental) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Lizhan Environmental Corp (OTCPK:LZENF) » Definitions » Total Inventories

Traded in Other Exchanges

N/A

Address

No. 716, Qifu Road, Wutong Street, Tongxiang, Zhejiang Province, CHN, 314500

Website

http://gb.lzencorp.com/

Lizhan Environmental Corp manufactures, distributes and markets synthetic leather and other fabrics from recycled leather waste, among other materials. It's products used in the production of residential and office furniture, garments, automotive upholstery products, and various consumer applications. It sells domestically in China and export to distributors and manufacturers in the United States and other foreign countries.

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