Tyco International (Tyco International) Inventory Turnover : 2.31 (As of Jun. 2016)

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What is Tyco International 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. Tyco International's Cost of Goods Sold for the three months ended in Jun. 2016 was $1,534 Mil. Tyco International's Average Total Inventories for the quarter that ended in Jun. 2016 was $663 Mil. Tyco International's Inventory Turnover for the quarter that ended in Jun. 2016 was 2.31.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Tyco International's Days Inventory for the three months ended in Jun. 2016 was 39.44.

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. Tyco International's Inventory-to-Revenue for the quarter that ended in Jun. 2016 was 0.27.

Tyco International Inventory Turnover Historical Data

The historical data trend for Tyco International'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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Tyco International Inventory Turnover Chart

Tyco International Annual Data

Trend

Sep06

Sep07

Sep08

Sep09

Sep10

Sep11

Sep12

Sep13

Sep14

Sep15

Inventory Turnover

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6.95

10.77

9.99

10.31

10.02

Tyco International Quarterly Data
	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16
Inventory Turnover	Get a 7-Day Free Trial															2.30	2.40	2.35	2.24	2.31

Tyco International Inventory Turnover Calculation

Tyco International's Inventory Turnover for the fiscal year that ended in Sep. 2015 is calculated as

	Inventory Turnover (A: Sep. 2015 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Sep. 2015 )	/ (	(Total Inventories (A: Sep. 2014 )	+	Total Inventories (A: Sep. 2015 ))	/	count )
=	6270	/ (	(625	+	627)	/	2 )
=	6270	/	626
=	10.02

Tyco International's Inventory Turnover for the quarter that ended in Jun. 2016 is calculated as

	Inventory Turnover (Q: Jun. 2016 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jun. 2016 )	/ (	(Total Inventories (Q: Mar. 2016 )	+	Total Inventories (Q: Jun. 2016 ))	/	count )
=	1534	/ (	(670	+	656)	/	2 )
=	1534	/	663
=	2.31

Tyco International (NYSE:TYC) 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.

Tyco International's Days Inventory for the three months ended in Jun. 2016 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jun. 2016 )	/	Cost of Goods Sold (Q: Jun. 2016 )	*	Days in Period
	=	663	/	1534	*	365 / 4
	=	39.44

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.

Tyco International's Inventory to Revenue for the quarter that ended in Jun. 2016 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jun. 2016 )	/	Revenue (Q: Jun. 2016 )
	=	663	/	2449
	=	0.27

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.

Tyco International Inventory Turnover Related Terms

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Tyco International (Tyco International) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Tyco International PLC (NYSE:TYC) » Definitions » Inventory Turnover

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Address

Unit 1202 Building 1000 City Gate, Mahon, Cork, IRL, 8212

Website

http://www.tyco.com

Tyco International PLC is a global provider of security products and services, fire detection and suppression products and services, and life safety products. Brand names include Tyco, Tyco Integrated Security, SimplexGrinnell, Sensormatic, Wormald, Scott, and ADT (outside North American markets). The revenue breakdown is 37% North America installation and services, 38% rest of world installation and services, and 25% global products. Tyco completed its spin-off of ADT and the flow control business in September 2012, five years after its prior three-way split.