Alcatel-Lucent (Alcatel-Lucent) Inventory Turnover : 0.91 (As of Jun. 2016)

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What is Alcatel-Lucent 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. Alcatel-Lucent's Cost of Goods Sold for the three months ended in Jun. 2016 was $1,597 Mil. Alcatel-Lucent's Average Total Inventories for the quarter that ended in Jun. 2016 was $1,752 Mil. Alcatel-Lucent's Inventory Turnover for the quarter that ended in Jun. 2016 was 0.91.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Alcatel-Lucent's Days Inventory for the three months ended in Jun. 2016 was 100.15.

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. Alcatel-Lucent's Inventory-to-Revenue for the quarter that ended in Jun. 2016 was 0.81.

Alcatel-Lucent Inventory Turnover Historical Data

The historical data trend for Alcatel-Lucent'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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Alcatel-Lucent Inventory Turnover Chart

Alcatel-Lucent Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Inventory Turnover

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4.66

5.15

5.16

4.26

4.77

Alcatel-Lucent Quarterly Data
	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Jun16
Inventory Turnover	Get a 7-Day Free Trial															0.94	1.07	1.13	1.43	0.91

Alcatel-Lucent Inventory Turnover Calculation

Alcatel-Lucent's Inventory Turnover for the fiscal year that ended in Dec. 2015 is calculated as

	Inventory Turnover (A: Dec. 2015 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2015 )	/ (	(Total Inventories (A: Dec. 2014 )	+	Total Inventories (A: Dec. 2015 ))	/	count )
=	9947.712	/ (	(2430.333	+	1742.919)	/	2 )
=	9947.712	/	2086.626
=	4.77

Alcatel-Lucent's Inventory Turnover for the quarter that ended in Jun. 2016 is calculated as

	Inventory Turnover (Q: Jun. 2016 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jun. 2016 )	/ (	(Total Inventories (Q: Dec. 2015 )	+	Total Inventories (Q: Jun. 2016 ))	/	count )
=	1596.629	/ (	(1742.919	+	1761.798)	/	2 )
=	1596.629	/	1752.3585
=	0.91

Alcatel-Lucent (NYSE:ALU) 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.

Alcatel-Lucent's Days Inventory for the three months ended in Jun. 2016 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jun. 2016 )	/	Cost of Goods Sold (Q: Jun. 2016 )	*	Days in Period
	=	1752.3585	/	1596.629	*	365 / 4
	=	100.15

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.

Alcatel-Lucent's Inventory to Revenue for the quarter that ended in Jun. 2016 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jun. 2016 )	/	Revenue (Q: Jun. 2016 )
	=	1752.3585	/	2174.157
	=	0.81

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.

Alcatel-Lucent Inventory Turnover Related Terms

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Alcatel-Lucent (Alcatel-Lucent) Business Description

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http://www.alcatel-lucent.com

Alcatel-Lucent SA was incorporated on June 18, 1898. The Company is engaged in designing, manufacturing, operations and sales of equipment, material and software related to domestic, industrial, civil, military or other applications concerning electricity, telecommunications, computers, electronics, aerospace industry, nuclear energy, metallurgy, and, in general, of all the means of production or transmission of energy or communication. The Company's core Networking segment includes three business divisions: IP Routing, IP Transport and IP Platforms. The IP ROUTING focus is on the intelligent IP router market and emerging Software Defined Networking (SDN) markets and related professional services. In IP TRANSPORT segment company designs, manufactures and markets optical networking equipment to transport information over fiber optic connections over long distances on land or under sea, as well as for short distances in metropolitan and regional areas. The portfolio also includes related professional services and microwave wireless transmission equipment. In IP PLATFORMS, the Company offers software and services to service providers that allow them to meet the market evolution needs of mobile and fixed networks. The Company's access segment includes four business divisions: WIRELESS are committed to a wireless access portfolio that is suited to the operators that are moving to 4G/LTE quickly and decisively. FIXED ACCESS IP-based fixed access products and related professional services provides support for both DSL and fiber, allowing service providers to extend Ultra-Broadband access to the customer's premise regardless of technology and to seamlessly combine copper and fiber access technologies and FTTx deployment models to achieve the fastest return-on-investment and time-to-market. In LICENSING the Intellectual Property Business Group works to monetize the patent portfolio through licensing and patent sales while also maintaining and prosecuting patents. The managed services portfolio includes Build-Operate-Manage-Transfer (BOMT) Solutions, Operations Transformation Solutions, and Network Operations Services. These services can be delivered across a wide array of network technologies including Network Access (FTTx), Next generation wireless (LTE, Small Cells, 4G), and IP Networks. The Company's Other segment includes Enterprise and Government businesses to provide end-to-end products, solutions and services for small, medium, large and extra-large companies to improve conversations and collaboration across employees, customers and partners. The Company sells all of its products and services to the world's telecommunications service providers through its direct sales force. The Company's competitors include Avaya, Cisco Systems, Ericsson, Fujitsu, Huawei, Nokia Solutions and Networks (NSN), Samsung, Adtran, Calix, Ciena, Juniper, Ericsson and Huawei.