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Hillshire Brands Co (FRA:LEE1) Total Inventories : €243 Mil (As of Jun. 2014)


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What is Hillshire Brands Co Total Inventories?

Hillshire Brands Co's total inventories for the quarter that ended in Jun. 2014 was €243 Mil. Hillshire Brands Co's average total inventories from the quarter that ended in Mar. 2014 to the quarter that ended in Jun. 2014 was €230 Mil.

In Ben Graham's calculation of Net-Net Working Capital, inventory is only considered worth half of its book value. Hillshire Brands Co's Net-Net Working Capital per share for the quarter that ended in Jun. 2014 was €-8.36.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Hillshire Brands Co's Days Inventory for the three months ended in Jun. 2014 was 37.02.

Inventory Turnover measures how fast the company turns over its inventory within a year. Hillshire Brands Co's Inventory Turnover for the quarter that ended in Jun. 2014 was 2.47.

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. Hillshire Brands Co's Inventory-to-Revenue for the quarter that ended in Jun. 2014 was 0.29.


Hillshire Brands Co Total Inventories Historical Data

The historical data trend for Hillshire Brands Co'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.

Hillshire Brands Co Total Inventories Chart

Hillshire Brands Co Annual Data
Trend Jun04 Jun05 Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13
Total Inventories
Get a 7-Day Free Trial Premium Member Only Premium Member Only 733.99 610.23 677.34 229.54 237.25

Hillshire Brands Co Quarterly Data
Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14
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 237.25 244.60 201.48 216.90 242.88

Hillshire Brands Co 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.


Hillshire Brands Co  (FRA:LEE1) 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.

Hillshire Brands Co's Net-Net Working Capital Per Share for the quarter that ended in Jun. 2014 is

Net-Net Working Capital Per Share (Q: Jun. 2014 )
=(Cash And Cash Equivalents+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(237.728+0.75 * 170.752+0.5 * 242.88-1524.256
-0-0)/124.000
=-8.36

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

Hillshire Brands Co's Days Inventory for the three months ended in Jun. 2014 is calculated as:

Days Inventory=Average Total Inventories (Q: Jun. 2014 )/Cost of Goods Sold (Q: Jun. 2014 )*Days in Period
=229.89/566.72*365 / 4
=37.02

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

Hillshire Brands Co's Inventory Turnover for the quarter that ended in Jun. 2014 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Jun. 2014 ) / Average Total Inventories (Q: Jun. 2014 )
=566.72 / 229.89
=2.47

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.

Hillshire Brands Co's Inventory to Revenue for the quarter that ended in Jun. 2014 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Jun. 2014 ) / Revenue (Q: Jun. 2014 )
=229.89 / 783.104
=0.29

* 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.


Hillshire Brands Co Total Inventories Related Terms

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Hillshire Brands Co (FRA:LEE1) Business Description

Traded in Other Exchanges
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Address
Hillshire Brands Co was organized as a corporation in Baltimore, Maryland in 1941 as The C.D. Kenny Company, was renamed Sara Lee Corporation in 1985 and adopted its current name in June 2012. It is a manufacturer and marketer of food products. It provides meat-centric food solutions for the retail and foodservice markets. The Company's Brands' portfolio includes iconic brands such as Jimmy Dean, Ball Park, Hillshire Farm, State Fair, Sara Lee frozen bakery and Chef Pierre pies, as well as artisanal brands Aidells and Gallo Salame. Its operations are organized around two business segments - Retail and Foodservice/Other. Retail sells a variety of packaged meat and frozen bakery products to retail customers in North America. Products include hot dogs and corn dogs, breakfast sausages, breakfast convenience items, including breakfast sandwiches and bowls, dinner sausages, premium deli and luncheon meats and cooked hams, as well as frozen pies, cakes, cheesecakes and other desserts. The primary raw materials for the segment's products include pork and beef, which are purchased almost entirely from third party suppliers and independent farmers, and poultry. The branded meat business is highly competitive, with an emphasis on product quality, innovation and value. New product innovations are a key component to its success. The Retail segment competes with other international, national, regional and local companies in each of the product categories. Foodservice/Other sells a variety of meat and bakery products to foodservice customers in North America. Products include hot dogs and corn dogs, breakfast sausages and sandwiches, dinner sausages, premium deli and luncheon meats, ham, beef and turkey as well as a variety of bakery products, including pastries, muffins, frozen pies, cakes and cheesecakes. The primary raw materials for Foodservice/Other's products include pork, beef and poultry and, to a lesser extent, wheat flour, sugar, corn syrup, cooking oils, butter, fruit and eggs, which are purchased from independent suppliers and farmers. The Foodservice/Other segment competes with other international, national, regional and local companies in each of its product categories. It considers major mass retailers and supermarket chains in the United States to be its most significant customers. The Company is subject to regulations administered by the U.S. Department of Agriculture and the Food and Drug Administration.

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