Waters (FRA:WAZ) Inventory Turnover

: 0.59 (As of Dec. 2023)

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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. Waters's Cost of Goods Sold for the three months ended in Dec. 2023 was €292 Mil. Waters's Average Total Inventories for the quarter that ended in Dec. 2023 was €492 Mil. Waters's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.59.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Waters's Days Inventory for the three months ended in Dec. 2023 was 153.70.

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. Waters's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.65.

Waters Inventory Turnover Historical Data

The historical data trend for Waters'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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Waters Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

3.34

3.07

3.62

3.16

2.43

Waters Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover																0.75	0.59	0.58	0.54	0.59

Waters Inventory Turnover Calculation

Waters'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 )
=	1096.019	/ (	(430.19	+	473.388)	/	2 )
=	1096.019	/	451.789
=	2.43

Waters'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 )
=	291.936	/ (	(510.105	+	473.388)	/	2 )
=	291.936	/	491.7465
=	0.59

Waters (FRA:WAZ) 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.

Waters'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
	=	491.7465	/	291.936	*	365 / 4
	=	153.70

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.

Waters'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 )
	=	491.7465	/	751.458
	=	0.65

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.

Waters Inventory Turnover Related Terms

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Waters (FRA:WAZ) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Diagnostics & Research » Waters Corp (FRA:WAZ) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

WAT:USA WAT:Mexico WAZ:Germany

Address

34 Maple Street, Milford, MA, USA, 01757

Website

https://www.waters.com

Water sells liquid chromatography, mass spectrometry, and thermal analysis tools. These analytical instruments provide essential information on various products, such as their molecular structures and physical properties, to help clients enhance the health and well-being of end users. As a percentage of sales in 2022, Waters generated 59% from pharmaceutical customers, 31% from industrial clients, and 10% from academic/government institutions.

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