Canon (CAJPY) Inventory Turnover : 0.73 (As of Dec. 2023)

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What is Canon 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. Canon's Cost of Goods Sold for the three months ended in Dec. 2023 was $4,276 Mil. Canon's Average Total Inventories for the quarter that ended in Dec. 2023 was $5,858 Mil. Canon's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.73.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Canon's Days Inventory for the three months ended in Dec. 2023 was 125.01.

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. Canon's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.72.

Canon Inventory Turnover Historical Data

The historical data trend for Canon'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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Canon Inventory Turnover Chart

Canon Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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3.36

3.19

2.97

2.79

2.67

Canon Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															0.78	0.62	0.59	0.59	0.73

Canon Inventory Turnover Calculation

Canon's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	15363.515	/ (	(5991.277	+	5534.607)	/	2 )
=	15363.515	/	5762.942
=	2.67

Canon's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

	Inventory Turnover (Q: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2023 )	/ (	(Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	4275.82	/ (	(6181.284	+	5534.607)	/	2 )
=	4275.82	/	5857.9455
=	0.73

Canon (OTCPK:CAJPY) 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.

Canon's Days Inventory for the three months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	5857.9455	/	4275.82	*	365 / 4
	=	125.01

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.

Canon's Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	5857.9455	/	8082.413
	=	0.72

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.

Canon Inventory Turnover Related Terms

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Canon (CAJPY) Business Description

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CAJFF:USA 7751:Japan CNN1:Germany

Address

30-2, Shimomaruko 3-Chome, Ohta-ku, Tokyo, JPN, 146-8501

Website

https://www.global.canon

Canon Inc designs, manufactures and distributes an extensive range of consumer and electronic products, including copiers, cameras, lenses, and inkjet printers. The company operates four major business segments: printing, imaging, medical, industrial, and others. It generates maximum revenue from the printing segment. Printing Business Unit includes Office multifunction devices (MFDs), Document solutions, Laser multifunction printers (MFPs), Laser printers, Inkjet printers, Image scanners, Calculators, Digital continuous feed presses, Digital sheet-fed presses, and Large format printers.