Telefonaktiebolaget L M Ericsson (Telefonaktiebolaget L M Ericsson) Inventory Turnover : 0.86 (As of Mar. 2024)

View and export this data going back to 1989. Start your Free Trial

What is Telefonaktiebolaget L M Ericsson 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. Telefonaktiebolaget L M Ericsson's Cost of Goods Sold for the three months ended in Mar. 2024 was $2,946 Mil. Telefonaktiebolaget L M Ericsson's Average Total Inventories for the quarter that ended in Mar. 2024 was $3,418 Mil. Telefonaktiebolaget L M Ericsson's Inventory Turnover for the quarter that ended in Mar. 2024 was 0.86.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Telefonaktiebolaget L M Ericsson's Days Inventory for the three months ended in Mar. 2024 was 105.89.

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. Telefonaktiebolaget L M Ericsson's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.67.

Telefonaktiebolaget L M Ericsson Inventory Turnover Historical Data

The historical data trend for Telefonaktiebolaget L M Ericsson'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.

* Premium members only.

Telefonaktiebolaget L M Ericsson Inventory Turnover Chart

Telefonaktiebolaget L M Ericsson Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

Get a 7-Day Free Trial

4.64

5.00

4.00

3.68

3.97

Telefonaktiebolaget L M Ericsson Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Inventory Turnover	Get a 7-Day Free Trial															0.83	0.85	0.85	1.12	0.86

Telefonaktiebolaget L M Ericsson Inventory Turnover Calculation

Telefonaktiebolaget L M Ericsson'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 )
=	15768.698	/ (	(4417.614	+	3516.71)	/	2 )
=	15768.698	/	3967.162
=	3.97

Telefonaktiebolaget L M Ericsson's Inventory Turnover for the quarter that ended in Mar. 2024 is calculated as

	Inventory Turnover (Q: Mar. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2024 )	/ (	(Total Inventories (Q: Dec. 2023 )	+	Total Inventories (Q: Mar. 2024 ))	/	count )
=	2945.55	/ (	(3516.71	+	3319.854)	/	2 )
=	2945.55	/	3418.282
=	0.86

Telefonaktiebolaget L M Ericsson (NAS:ERIC) 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.

Telefonaktiebolaget L M Ericsson's Days Inventory for the three months ended in Mar. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2024 )	/	Cost of Goods Sold (Q: Mar. 2024 )	*	Days in Period
	=	3418.282	/	2945.55	*	365 / 4
	=	105.89

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.

Telefonaktiebolaget L M Ericsson's Inventory to Revenue for the quarter that ended in Mar. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	3418.282	/	5121.839
	=	0.67

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.

Telefonaktiebolaget L M Ericsson Inventory Turnover Related Terms

Thank you for viewing the detailed overview of Telefonaktiebolaget L M Ericsson's Inventory Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.

Telefonaktiebolaget L M Ericsson (Telefonaktiebolaget L M Ericsson) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Telefonaktiebolaget L M Ericsson (NAS:ERIC) » Definitions » Inventory Turnover

Comparable Companies

Address

Torshamnsgatan 21, Kista, Stockholm, SWE, SE-164 83

Website

https://www.ericsson.com

Ericsson provides telecom equipment and services that are primarily used to build and facilitate mobile networks through operations in three segments: networks, cloud and software services, and enterprises. The firm's customers have historically been primarily wireless carriers, but the firm is making a push to cater more to other enterprises as well, both as they try to take advantage of 5G capabilities and on other "as-a-service" communications platforms. The company also licenses its patents to handset manufacturers so their devices are compatible with wireless networks.