International Business Machines (International Business Machines) Inventory Turnover

: 5.56 (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. International Business Machines's Cost of Goods Sold for the three months ended in Dec. 2023 was $7,113 Mil. International Business Machines's Average Total Inventories for the quarter that ended in Dec. 2023 was $1,280 Mil. International Business Machines's Inventory Turnover for the quarter that ended in Dec. 2023 was 5.56.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. International Business Machines's Days Inventory for the three months ended in Dec. 2023 was 16.42.

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. International Business Machines's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.07.

International Business Machines Inventory Turnover Historical Data

The historical data trend for International Business Machines'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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International Business Machines Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

15.86

14.17

14.95

17.40

20.32

International Business Machines Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover																4.22	4.27	4.49	4.64	5.56

International Business Machines Inventory Turnover Calculation

International Business Machines'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 )
=	27560	/ (	(1552	+	1161)	/	2 )
=	27560	/	1356.5
=	20.32

International Business Machines'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 )
=	7113	/ (	(1399	+	1161)	/	2 )
=	7113	/	1280
=	5.56

International Business Machines (NYSE:IBM) 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.

International Business Machines'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
	=	1280	/	7113	*	365 / 4
	=	16.42

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.

International Business Machines'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 )
	=	1280	/	17380
	=	0.07

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.

International Business Machines Inventory Turnover Related Terms

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International Business Machines (International Business Machines) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » International Business Machines Corp (NYSE:IBM) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

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Address

One New Orchard Road, Armonk, NY, USA, 10504

Website

http://www.ibm.com

IBM looks to be a part of every aspect of an enterprise's IT needs. The company primarily sells software, IT services, consulting, and hardware. IBM operates in 175 countries and employs approximately 350,000 people. The company has a robust roster of 80,000 business partners to service 5,200 clients—which includes 95% of all Fortune 500. While IBM is a B2B company, IBM's outward impact is substantial. For example, IBM manages 90% of all credit card transactions globally and is responsible for 50% of all wireless connections in the world.

Executives

Michael Miebach	director	2000 PURCHASE STREET, PURCHASE NY 10577
James J Kavanaugh	officer: Vice President and Controller	IBM CORPORATION, ONE NEW ORCHARD RD, ARMONK NY 10504-1722
Nicolas A. Fehring	officer: VP, Controller	ONE NEW ORCHARD ROAD, ARMONK NY 10504
Del Bene Robert F	officer: VP, Controller	IBM CORPORATION, ONE NEW ORCHARD RD, ARMONK NY 10504-1722
David N Farr	director
Michelle J Howard	director	C/O SECRETARY'S OFFICE, IBM CORPORATION, ARMONK NY 10504
Alfred W Zollar	director	C/O LOTUS SOFTWARE, ONE ROGER STREET, CAMBRIDGE MA 02142
Gary D Cohn	officer: Vice Chairman	812 PARK AVENUE, 7-8A, NEW YORK NY 10021
Nickle Jaclyn Lamoreaux	officer: Senior Vice President	IBM CORPORATION, ONE NEW ORCHARD RD, ARMONK NY 10504-1722
James M Whitehurst	officer: President	IBM CORPORATION, ONE NEW ORCHARD RD, ARMONK NY 10504-1722
Alex Gorsky	director	JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Andrew N Liveris	director	2211 H.H. DOW WAY, MIDLAND MI 48674
Joseph Swedish	director	WELLPOINT, INC., 120 MONUMENT CIRCLE, INDIANAPOLIS IN 46204
Frederick H Waddell	director	50 S. LA SALLE ST., CHICAGO IL 60675
Mcnabb Frederick William Iii	director	C/O UNITEDHEALTH GROUP, 9900 BREN ROAD EAST, MN008-T502, MINNETONKA MN 55343