Switch to:
Tribune Media Co (OTCPK:TRBAA)
Inventory Turnover
18.69 (As of Sep. 2008)

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. Tribune Media Co's cost of goods sold for the three months ended in Sep. 2008 was $594 Mil. Tribune Media Co's average inventory for the quarter that ended in Sep. 2008 was $32 Mil. Tribune Media Co's inventory turnover for the quarter that ended in Sep. 2008 was 18.69.

Days inventory indicates the number of days of goods in sales that a company has in the inventory. Tribune Media Co's days inventory for the three months ended in Sep. 2008 was 4.87.

Inventory can be measured by Days Sales of Inventory (DSI). Tribune Media Co's days sales of inventory (DSI) for the three months ended in Sep. 2008 was 2.79.

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. Tribune Media Co's inventory to revenue ratio for the quarter that ended in Sep. 2008 was 0.03.


Definition

Tribune Media Co's Inventory Turnover for the fiscal year that ended in Dec. 2007 is calculated as

Inventory Turnover (A: Dec. 2007 )=Cost of Goods Sold (A: Dec. 2007 ) / Average Inventory (A: Dec. 2007 )
=2545.554 / 0
=N/A

Tribune Media Co's Inventory Turnover for the quarter that ended in Sep. 2008 is calculated as

Inventory Turnover (Q: Sep. 2008 )=Cost of Goods Sold (Q: Sep. 2008 ) / Average Inventory (Q: Sep. 2008 )
=594.161 / 31.792
=18.69

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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.

Tribune Media Co's Days Inventory for the three months ended in Sep. 2008 is calculated as:

Days Inventory=Inventory (Q: Sep. 2008 )/Cost of Goods Sold (Q: Sep. 2008 )*Days in Period
=31.792/594.161*91
=4.87

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

Tribune Media Co's Days Sales of Inventory for the three months ended in Sep. 2008 is calculated as:

Days Sales of Inventory (DSI)=Inventory (Q: Sep. 2008 )/Revenue (Q: Sep. 2008 )*Days in Period
=31.792/1036.946*91
=2.79

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.

Tribune Media Co's Inventory to Revenue for the quarter that ended in Sep. 2008 is calculated as

Inventory to Revenue=Inventory (Q: Sep. 2008 ) / Revenue (Q: Sep. 2008 )
=31.792 / 1036.946
=0.03

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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

Inventory, Cost of Goods Sold, Days Inventory, Revenue, Inventory to Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Tribune Media Co Annual Data

Dec98Dec99Dec00Dec01Dec02Dec03Dec04Dec05Dec06Dec07
Inventory Turnover 0.000.000.000.000.0057.1654.3961.130.000.00

Tribune Media Co Quarterly Data

Jun06Sep06Dec06Mar07Jun07Sep07Dec07Mar08Jun08Sep08
Inventory Turnover 17.4014.850.0012.2611.6414.320.0013.5418.4918.69
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide