Linear Technology (Linear Technology) Inventory Turnover : 0.93 (As of Dec. 2016)

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What is Linear Technology 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. Linear Technology's Cost of Goods Sold for the three months ended in Dec. 2016 was $91 Mil. Linear Technology's Average Total Inventories for the quarter that ended in Dec. 2016 was $98 Mil. Linear Technology's Inventory Turnover for the quarter that ended in Dec. 2016 was 0.93.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Linear Technology's Days Inventory for the three months ended in Dec. 2016 was 98.59.

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. Linear Technology's Inventory-to-Revenue for the quarter that ended in Dec. 2016 was 0.26.

Linear Technology Inventory Turnover Historical Data

The historical data trend for Linear Technology'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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Linear Technology Inventory Turnover Chart

Linear Technology Annual Data

Trend

Jun07

Jun08

Jun09

Jun10

Jun11

Jun12

Jun13

Jun14

Jun15

Jun16

Inventory Turnover

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4.12

3.86

3.79

3.72

3.49

Linear Technology Quarterly Data
	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16
Inventory Turnover	Get a 7-Day Free Trial															0.89	0.91	0.92	0.94	0.93

Linear Technology Inventory Turnover Calculation

Linear Technology's Inventory Turnover for the fiscal year that ended in Jun. 2016 is calculated as

	Inventory Turnover (A: Jun. 2016 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jun. 2016 )	/ (	(Total Inventories (A: Jun. 2015 )	+	Total Inventories (A: Jun. 2016 ))	/	count )
=	343.801	/ (	(99.861	+	97.251)	/	2 )
=	343.801	/	98.556
=	3.49

Linear Technology's Inventory Turnover for the quarter that ended in Dec. 2016 is calculated as

	Inventory Turnover (Q: Dec. 2016 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2016 )	/ (	(Total Inventories (Q: Sep. 2016 )	+	Total Inventories (Q: Dec. 2016 ))	/	count )
=	90.99	/ (	(98.073	+	98.548)	/	2 )
=	90.99	/	98.3105
=	0.93

Linear Technology (NAS:LLTC) 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.

Linear Technology's Days Inventory for the three months ended in Dec. 2016 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2016 )	/	Cost of Goods Sold (Q: Dec. 2016 )	*	Days in Period
	=	98.3105	/	90.99	*	365 / 4
	=	98.59

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.

Linear Technology's Inventory to Revenue for the quarter that ended in Dec. 2016 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2016 )	/	Revenue (Q: Dec. 2016 )
	=	98.3105	/	375.817
	=	0.26

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.

Linear Technology Inventory Turnover Related Terms

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Linear Technology (Linear Technology) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Linear Technology Corp (NAS:LLTC) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.linear.com

Linear Technology designs and manufactures standard high-performance analog integrated circuits for a diverse customer base spanning industrial, automotive, communications, and high-end consumer electronics. The firm offers thousands of analog products to tens of thousands of original equipment manufacturers globally. Most of its products support functions such as power management, data interface, and conversion. International markets account for the lion's share of Linear's revenue.

Executives

Steve Pietkiewicz	officer: VP & GM Power Business Unit	1630 MCCARTHY BLVD., MILPITAS CA 95035
Swanson Robert H Jr	director, officer: Executive Chair	1630 MCCARTHY BLVD, MILPITAS CA 95035
Lothar Maier	director, officer: CEO	1630 MCCARTHY BLVD, MILPITAS CA 95035