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Formosa Epitaxyorporation (TPE:3061) Total Inventories : NT$1,309 Mil (As of Sep. 2014)


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What is Formosa Epitaxyorporation Total Inventories?

Formosa Epitaxyorporation's total inventories for the quarter that ended in Sep. 2014 was NT$1,309 Mil. Formosa Epitaxyorporation's average total inventories from the quarter that ended in Jun. 2014 to the quarter that ended in Sep. 2014 was NT$1,418 Mil.

In Ben Graham's calculation of Net-Net Working Capital, inventory is only considered worth half of its book value. Formosa Epitaxyorporation's Net-Net Working Capital per share for the quarter that ended in Sep. 2014 was NT$-2.93.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Formosa Epitaxyorporation's Days Inventory for the three months ended in Sep. 2014 was 72.04.

Inventory Turnover measures how fast the company turns over its inventory within a year. Formosa Epitaxyorporation's Inventory Turnover for the quarter that ended in Sep. 2014 was 1.27.

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. Formosa Epitaxyorporation's Inventory-to-Revenue for the quarter that ended in Sep. 2014 was 0.99.


Formosa Epitaxyorporation Total Inventories Historical Data

The historical data trend for Formosa Epitaxyorporation'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.

Formosa Epitaxyorporation Total Inventories Chart

Formosa Epitaxyorporation Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13
Total Inventories
260.11 714.97 1,103.40 1,035.63 1,483.60

Formosa Epitaxyorporation Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 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 1,289.00 1,483.60 1,552.13 1,527.82 1,309.05

Formosa Epitaxyorporation 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.


Formosa Epitaxyorporation  (TPE:3061) 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.

Formosa Epitaxyorporation'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)
=(2886.784+0.75 * 1684.316+0.5 * 1309.049-5413.856
-0-1154.558)/602.061
=-2.93

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

Formosa Epitaxyorporation's Days Inventory for the three 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
=1418.434/1796.745*365 / 4
=72.04

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

Formosa Epitaxyorporation'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 )
=1796.745 / 1418.434
=1.27

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.

Formosa Epitaxyorporation'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 )
=1418.434 / 1435.795
=0.99

* 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.


Formosa Epitaxyorporation Total Inventories Related Terms

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Formosa Epitaxyorporation Business Description

Traded in Other Exchanges
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Address
Formosa Epitaxy Incorporation manufactures & distributes indium gallium nitride wafers & chips. Its products include InGaN wafers, green InGaN wafers & ultraviolet InGaN wafers which are used in display panels, automobile parts & other applications.

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