China Precision Steel (China Precision Steel) Inventory Turnover : 0.82 (As of Dec. 2014)

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What is China Precision Steel Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. China Precision Steel's Cost of Goods Sold for the three months ended in Dec. 2014 was $7.95 Mil. China Precision Steel's Average Total Inventories for the quarter that ended in Dec. 2014 was $9.66 Mil. China Precision Steel's Inventory Turnover for the quarter that ended in Dec. 2014 was 0.82.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. China Precision Steel's Days Inventory for the three months ended in Dec. 2014 was 110.93.

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. China Precision Steel's Inventory-to-Revenue for the quarter that ended in Dec. 2014 was 1.86.

China Precision Steel Inventory Turnover Historical Data

The historical data trend for China Precision Steel's Inventory Turnover 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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China Precision Steel Inventory Turnover Chart

China Precision Steel Annual Data

Trend

Dec04

Dec05

Jun07

Jun08

Jun09

Jun10

Jun11

Jun12

Jun13

Jun14

Inventory Turnover

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4.47

2.80

3.28

3.08

4.96

China Precision Steel Quarterly Data
	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14
Inventory Turnover	Get a 7-Day Free Trial															1.07	1.37	1.10	0.84	0.82

China Precision Steel Inventory Turnover Calculation

China Precision Steel's Inventory Turnover for the fiscal year that ended in Jun. 2014 is calculated as

	Inventory Turnover (A: Jun. 2014 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jun. 2014 )	/ (	(Total Inventories (A: Jun. 2013 )	+	Total Inventories (A: Jun. 2014 ))	/	count )
=	64.98	/ (	(15.837	+	10.344)	/	2 )
=	64.98	/	13.0905
=	4.96

China Precision Steel's Inventory Turnover for the quarter that ended in Dec. 2014 is calculated as

	Inventory Turnover (Q: Dec. 2014 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2014 )	/ (	(Total Inventories (Q: Sep. 2014 )	+	Total Inventories (Q: Dec. 2014 ))	/	count )
=	7.946	/ (	(10.051	+	9.269)	/	2 )
=	7.946	/	9.66
=	0.82

China Precision Steel (OTCPK:CPSL) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

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

China Precision Steel's Days Inventory for the three months ended in Dec. 2014 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2014 )	/	Cost of Goods Sold (Q: Dec. 2014 )	*	Days in Period
	=	9.66	/	7.946	*	365 / 4
	=	110.93

2. 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.

China Precision Steel's Inventory to Revenue for the quarter that ended in Dec. 2014 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2014 )	/	Revenue (Q: Dec. 2014 )
	=	9.66	/	5.187
	=	1.86

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

China Precision Steel Inventory Turnover Related Terms

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China Precision Steel (China Precision Steel) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » China Precision Steel Inc (OTCPK:CPSL) » Definitions » Inventory Turnover

Traded in Other Exchanges

N/A

Address

Website

http://www.chinaprecisionsteelinc.com

China Precision Steel Inc is a steel processing company. The firm through its subsidiaries manufacture and sell cold rolled precision steel products for applications including automobile components and spare parts, kitchen tools, electrical appliances, roofing and food packaging materials. The company conducts its operations mainly in China.

Executives

Michael Friess

director, officer: Secretary

5353 MANHATTAN CIRCLE, STE 101, BOULDER CO 80303

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