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Vodafone Group PLC (NAS:VOD)
Inventory Turnover
42.33 (As of Sep. 2013)

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. Vodafone Group PLC's cost of goods sold for the six months ended in Sep. 2013 was $21,928 Mil. Vodafone Group PLC's average inventory for the quarter that ended in Sep. 2013 was $834 Mil. Vodafone Group PLC's inventory turnover for the quarter that ended in Sep. 2013 was 42.33.

Days inventory indicates the number of days of goods in sales that a company has in the inventory. Vodafone Group PLC's days inventory for the six months ended in Sep. 2013 was 3.46.

Inventory can be measured by Days Sales of Inventory (DSI). Vodafone Group PLC's days sales of inventory (DSI) for the six months ended in Sep. 2013 was 2.47.

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. Vodafone Group PLC's inventory to revenue ratio for the quarter that ended in Sep. 2013 was 0.03.


Definition

Vodafone Group PLC's Inventory Turnover for the fiscal year that ended in Mar. 2013 is calculated as

Inventory Turnover (A: Mar. 2013 )=Cost of Goods Sold (A: Mar. 2013 ) / Average Inventory (A: Mar. 2013 )
=46715.1607963 / 689.127105666
=67.79

Vodafone Group PLC's Inventory Turnover for the quarter that ended in Sep. 2013 is calculated as

Inventory Turnover (Q: Sep. 2013 )=Cost of Goods Sold (Q: Sep. 2013 ) / Average Inventory (Q: Sep. 2013 )
=21927.5362319 / 834.138486312
=26.29

* 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.

Vodafone Group PLC's Days Inventory for the six months ended in Sep. 2013 is calculated as:

Days Inventory=Inventory (Q: Sep. 2013 )/Cost of Goods Sold (Q: Sep. 2013 )*Days in Period
=834.138486312/21927.5362319*91
=3.46

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

Vodafone Group PLC's Days Sales of Inventory for the six months ended in Sep. 2013 is calculated as:

Days Sales of Inventory (DSI)=Inventory (Q: Sep. 2013 )/Revenue (Q: Sep. 2013 )*Days in Period
=834.138486312/30694.041868*91
=2.47

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.

Vodafone Group PLC's Inventory to Revenue for the quarter that ended in Sep. 2013 is calculated as

Inventory to Revenue=Inventory (Q: Sep. 2013 ) / Revenue (Q: Sep. 2013 )
=834.138486312 / 30694.041868
=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.

Vodafone Group PLC Annual Data

Mar04Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13
Inventory Turnover 42.5035.8957.5465.0152.4962.7267.9957.3864.9167.79

Vodafone Group PLC Semi-Annual Data

Mar09Sep09Mar10Sep10Mar11Sep11Mar12Sep12Mar13Sep13
Inventory Turnover 0.0042.8454.2841.8048.0142.9551.8636.4559.9142.33
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