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Esterline Technologies Corp (NYSE:ESL)
Inventory Turnover
0.69 (As of Dec. 2016)

Inventory turnover measures how fast the company turns over its inventory within a year. It is calculated as cost of goods sold divided by average inventory. Esterline Technologies Corp's cost of goods sold for the three months ended in Dec. 2016 was \$314 Mil. Esterline Technologies Corp's average inventory for the quarter that ended in Dec. 2016 was \$452 Mil. Esterline Technologies Corp's inventory turnover for the quarter that ended in Dec. 2016 was 0.69.

Days inventory indicates the number of days of goods in sales that a company has in the inventory. Esterline Technologies Corp's days inventory for the three months ended in Dec. 2016 was 131.55.

Inventory can be measured by Days Sales of Inventory (DSI). Esterline Technologies Corp's days sales of inventory (DSI) for the three months ended in Dec. 2016 was 90.15.

Inventory to revenue ratio 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. Esterline Technologies Corp's inventory to revenue ratio for the quarter that ended in Dec. 2016 was 0.99.

Definition

Esterline Technologies Corp's Inventory Turnover for the fiscal year that ended in Sep. 2016 is calculated as

 Inventory Turnover (A: Sep. 2016 ) = Cost of Goods Sold / Average Inventory = Cost of Goods Sold (A: Sep. 2016 ) / ( (Inventory (A: Sep. 2015 ) + Inventory (A: Sep. 2016 )) / 2 ) = 1331.386 / ( (446.768 + 450.206) / 2 ) = 1331.386 / 448.487 = 2.97

Esterline Technologies Corp's Inventory Turnover for the quarter that ended in Dec. 2016 is calculated as

 Inventory Turnover (Q: Dec. 2016 ) = Cost of Goods Sold / Average Inventory = Cost of Goods Sold (Q: Dec. 2016 ) / ( (Inventory (Q: Sep. 2016 ) + Inventory (Q: Dec. 2016 )) / 2 ) = 313.686 / ( (450.206 + 454.233) / 2 ) = 313.686 / 452.2195 = 0.69

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

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.

Esterline Technologies Corp's Days Inventory for the three months ended in Dec. 2016 is calculated as:

 Days Inventory = Average Inventory (Q: Dec. 2016 ) / Cost of Goods Sold (Q: Dec. 2016 ) * Days in Period = 452.2195 / 313.686 * 365 / 4 = 131.55

2. Inventory can be measured by Days Sales of Inventory (DSI).

Esterline Technologies Corp's Days Sales of Inventory for the three months ended in Dec. 2016 is calculated as:

 Days Sales of Inventory (DSI) = Average Inventory (Q: Dec. 2016 ) / Revenue (Q: Dec. 2016 ) * Days in Period = 452.2195 / 457.733 * 365 / 4 = 90.15

3. 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.

Esterline Technologies Corp's Inventory to Revenue for the quarter that ended in Dec. 2016 is calculated as

 Inventory to Revenue = Average Inventory (Q: Dec. 2016 ) / Revenue (Q: Dec. 2016 ) = 452.2195 / 457.733 = 0.99

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

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.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Esterline Technologies Corp Annual Data

 Oct07 Oct08 Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Sep15 Sep16 Inventory Turnover 3.76 3.82 3.55 3.76 3.39 2.95 2.76 3.02 2.69 2.97

Esterline Technologies Corp Quarterly Data

 Oct14 Jan15 Apr15 Jul15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Inventory Turnover 0.76 0.70 0.74 0.69 0.48 0.68 0.74 0.74 0.76 0.69
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