Retva (NZSE:PPG) Inventory Turnover : 0.81 (As of Jan. 2014)

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What is Retva 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. Retva's Cost of Goods Sold for the six months ended in Jan. 2014 was NZ$16.76 Mil. Retva's Average Total Inventories for the quarter that ended in Jan. 2014 was NZ$20.60 Mil. Retva's Inventory Turnover for the quarter that ended in Jan. 2014 was 0.81.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Retva's Days Inventory for the six months ended in Jan. 2014 was 224.33.

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. Retva's Inventory-to-Revenue for the quarter that ended in Jan. 2014 was 0.53.

Retva Inventory Turnover Historical Data

The historical data trend for Retva'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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Retva Inventory Turnover Chart

Retva Annual Data

Trend

Jul05

Jul06

Jul07

Jul08

Jul09

Jul10

Jul11

Jul12

Jul13

Inventory Turnover

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3.90

3.82

2.35

1.78

2.01

Retva Semi-Annual Data
	Jan07	Jul07	Jan08	Jul08	Jan09	Jul09	Jan10	Jul10	Jan11	Jul11	Jan12	Jul12	Jan13	Jul13	Jan14
Inventory Turnover	Get a 7-Day Free Trial										1.01	0.66	0.85	1.10	0.81

Retva Inventory Turnover Calculation

Retva's Inventory Turnover for the fiscal year that ended in Jul. 2013 is calculated as

	Inventory Turnover (A: Jul. 2013 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jul. 2013 )	/ (	(Total Inventories (A: Jul. 2012 )	+	Total Inventories (A: Jul. 2013 ))	/	count )
=	43.575	/ (	(23.756	+	19.548)	/	2 )
=	43.575	/	21.652
=	2.01

Retva's Inventory Turnover for the quarter that ended in Jan. 2014 is calculated as

	Inventory Turnover (Q: Jan. 2014 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jan. 2014 )	/ (	(Total Inventories (Q: Jul. 2013 )	+	Total Inventories (Q: Jan. 2014 ))	/	count )
=	16.756	/ (	(19.548	+	21.646)	/	2 )
=	16.756	/	20.597
=	0.81

Retva (NZSE:PPG) 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.

Retva's Days Inventory for the six months ended in Jan. 2014 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jan. 2014 )	/	Cost of Goods Sold (Q: Jan. 2014 )	*	Days in Period
	=	20.597	/	16.756	*	365 / 2
	=	224.33

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.

Retva's Inventory to Revenue for the quarter that ended in Jan. 2014 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jan. 2014 )	/	Revenue (Q: Jan. 2014 )
	=	20.597	/	38.952
	=	0.53

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.

Retva Inventory Turnover Related Terms

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Retva (NZSE:PPG) Business Description

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GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Retva Ltd (NZSE:PPG) » Definitions » Inventory Turnover

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Address

Website

http://www.ppgl.co.nz

Postie Plus Group Limited owns and operates a chain of retail apparel stores in New Zealand under Postie+ brand name. It offers apparel for women, men, children sleepwear, lingerie, accessories, thermals, footwear and cosmetics, among others.