Alcoa (AAPRB.PFD) Total Inventories : $3,455.00 Mil (As of Sep. 2016)

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What is Alcoa Total Inventories?

Alcoa's total inventories for the quarter that ended in Sep. 2016 was $3,455.00 Mil. Alcoa's average total inventories from the quarter that ended in Jun. 2016 to the quarter that ended in Sep. 2016 was $3,446.50 Mil.

In Ben Graham's calculation of Net-Net Working Capital, inventory is only considered worth half of its book value. Alcoa's Net-Net Working Capital per share for the quarter that ended in Sep. 2016 was $N/A.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Alcoa's Days Inventory for the three months ended in Sep. 2016 was 74.58.

Inventory Turnover measures how fast the company turns over its inventory within a year. Alcoa's Inventory Turnover for the quarter that ended in Sep. 2016 was 1.22.

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. Alcoa's Inventory-to-Revenue for the quarter that ended in Sep. 2016 was 0.66.

Alcoa Total Inventories Historical Data

The historical data trend for Alcoa'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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Alcoa Total Inventories Chart

Alcoa Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Total Inventories

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2,899.00

2,825.00

2,705.00

3,082.00

3,442.00

Alcoa Quarterly Data
	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16
Total Inventories	Get a 7-Day Free Trial															3,559.00	3,442.00	3,549.00	3,438.00	3,455.00

Alcoa 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.

Alcoa (NYSE:AAPRB.PFD) 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.

Alcoa's Net-Net Working Capital Per Share for the quarter that ended in Sep. 2016 is

	Net-Net Working Capital Per Share (Q: Sep. 2016 )
=	(Cash And Cash Equivalents	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(1863	+	0.75 * 1675	+	0.5 * 3455	-	23503
-	58	-	2170)	/	0
=	N/A

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

Alcoa's Days Inventory for the three months ended in Sep. 2016 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2016 )	/	Cost of Goods Sold (Q: Sep. 2016 )	*	Days in Period
	=	3446.5	/	4217	*	365 / 4
	=	74.58

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

Alcoa's Inventory Turnover for the quarter that ended in Sep. 2016 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Sep. 2016 )	/	Average Total Inventories (Q: Sep. 2016 )
	=	4217	/	3446.5
	=	1.22

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.

Alcoa's Inventory to Revenue for the quarter that ended in Sep. 2016 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2016 )	/	Revenue (Q: Sep. 2016 )
	=	3446.5	/	5213
	=	0.66

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.

Alcoa Total Inventories Related Terms

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Alcoa (AAPRB.PFD) Business Description

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Address

Website

https://www.arconic.com

Arconic Inc, formerly known as Alcoa Inc was first incorporated as the Pittsburgh Reduction Company on October 1, 1888. The Company is engaged in manufacturing and engineering lightweight metals. Its products include aluminum, titanium, and nickel, used in aerospace, automotive, commercial transportation, packaging, building and construction, oil and gas, defense, consumer electronics, and industrial applications. The Company is also engaged in the production and management of aluminum, fabricated aluminum, and alumina combined, through its active participation in all aspects of the industry: technology, mining, refining, smelting, fabricating, and recycling. It has investments and operating activities in, among others, Australia, Brazil, China, Guinea, Iceland, Russia, and Saudi Arabia. The Company operates in segments including Global Rolled Products, Engineered Products and Solutions, and Transportation and Construction Solutions. The Company's Global Rolled Products segment represents its midstream operations. The Engineered Products and Solutions segment represents a portion of the Company's downstream operations. Its downstream portfolio includes two segments Engineered Products and Solutions and Transportation and Construction Solutions. The Engineered Products and Solutions consist of Alcoa Titanium & Engineered Products; Alcoa Fastening Systems & Rings; Alcoa Forgings and Extrusions; and Alcoa Power and Propulsion. The Company's Transportation and Construction Solutions segment represents a portion of its downstream operations. The raw materials used includes bauxite, alloying materials, caustic soda, alumina, electricity, aluminum fluoride, fuel oil, calcined petroleum coke, lime (CaO), cathode blocks, natural gas, electricity, liquid pitch, natural gas, titanium alloys, titanium sponge and resin. The Company's trademark products include Howmet metal castings, Huck fasteners, Kawneer building panels and Dura-Bright wheels with easy-clean surface treatments.