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Hospira (FRA:HOS) Total Inventories : €1,089 Mil (As of Jun. 2015)


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What is Hospira Total Inventories?

Hospira's total inventories for the quarter that ended in Jun. 2015 was €1,089 Mil. Hospira's average total inventories from the quarter that ended in Mar. 2015 to the quarter that ended in Jun. 2015 was €1,090 Mil.

In Ben Graham's calculation of Net-Net Working Capital, inventory is only considered worth half of its book value. Hospira's Net-Net Working Capital per share for the quarter that ended in Jun. 2015 was €-6.69.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Hospira's Days Inventory for the three months ended in Jun. 2015 was 168.10.

Inventory Turnover measures how fast the company turns over its inventory within a year. Hospira's Inventory Turnover for the quarter that ended in Jun. 2015 was 0.54.

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. Hospira's Inventory-to-Revenue for the quarter that ended in Jun. 2015 was 1.03.


Hospira Total Inventories Historical Data

The historical data trend for Hospira'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.

Hospira Total Inventories Chart

Hospira Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Total Inventories
Get a 7-Day Free Trial Premium Member Only Premium Member Only 722.36 780.52 760.32 778.33 919.11

Hospira Quarterly Data
Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15
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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only 859.50 923.44 919.11 1,091.24 1,089.16

Hospira 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.


Hospira  (FRA:HOS) 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.

Hospira's Net-Net Working Capital Per Share for the quarter that ended in Jun. 2015 is

Net-Net Working Capital Per Share (Q: Jun. 2015 )
=(Cash And Cash Equivalents+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(730.531+0.75 * 523.908+0.5 * 1089.158-2824.648
-0-0)/172.9
=-6.69

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

Hospira's Days Inventory for the three months ended in Jun. 2015 is calculated as:

Days Inventory=Average Total Inventories (Q: Jun. 2015 )/Cost of Goods Sold (Q: Jun. 2015 )*Days in Period
=1090.201/591.803*365 / 4
=168.10

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

Hospira's Inventory Turnover for the quarter that ended in Jun. 2015 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Jun. 2015 ) / Average Total Inventories (Q: Jun. 2015 )
=591.803 / 1090.201
=0.54

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.

Hospira's Inventory to Revenue for the quarter that ended in Jun. 2015 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Jun. 2015 ) / Revenue (Q: Jun. 2015 )
=1090.201 / 1054.588
=1.03

* 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.


Hospira Total Inventories Related Terms

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Hospira (FRA:HOS) Business Description

Traded in Other Exchanges
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Address
Hospira Inc was incorporated in Delaware on September 16, 2003. The Company is a provider of injectable drugs and infusion technologies, and is also engaged in developing, manufacturing, marketing and distribution. Its portfolio includes generic acute-care and oncology injectables, biosimilars, and integrated infusion therapy and medication management products. Its portfolio of products is used by hospitals and alternate site providers, such as clinics, home healthcare providers and long-term care facilities. The Company's business segments are Specialty Injectable Pharmaceuticals, Medication Management and Other Pharmaceuticals. Specialty Injectable Pharmaceuticals consists of generic injectable pharmaceuticals products. Generic injectable pharmaceuticals provide customers with a lower-cost alternative to branded products when associated patent protection expires, when patents are declared invalid, or when the generic products do not infringe the patents of others. Our generic injectable pharmaceuticals are sold in therapeutic areas including analgesia, anesthesia, anti-infectives, cardiovascular, oncology, and other. Medication Management offer the Hospira MedNet safety software system, which is designed for hospitals to customize intravenous drug dosage limits and track drug delivery to prevent medication errors. The wireless network version of the Hospira MedNet system establishes real-time send-and-receive capability and can interface with select hospital and pharmacy information systems. Other Pharmaceuticals primarily consists of large volume I.V. solutions, nutritionals and contract manufacturing services. We offer infusion therapy solutions and related supplies that include I.V. solutions for general use, I.V. nutrition products, and solutions for washing and cleansing of wounds or surgical sites. The Company's primary customers include hospitals, wholesalers, integrated delivery networks and alternate site facilities. Its competitors include Baxter International Inc.; Becton, Dickinson and Company; Fresenius Kabi AG; Mallinckrodt plc; Mylan Inc; Par Pharmaceuticals Companies, Inc.; Pfizer Inc.; Sandoz; Sanofi S.A. and Teva Pharmaceuticals, Aspen Medical; Fresenius Kabi; Pfizer; Sandoz and a number of smaller competitors and the originator companies. The Company's operations and business activities are subject to extensive legal and regulatory requirements that are enforced by numerous governmental agencies in the countries in which it do business.

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