CNH Industrial NV (CNH Industrial NV) Inventory Turnover : 0.78 (As of Dec. 2023)

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What is CNH Industrial NV 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. CNH Industrial NV's Cost of Goods Sold for the three months ended in Dec. 2023 was $4,705 Mil. CNH Industrial NV's Average Total Inventories for the quarter that ended in Dec. 2023 was $5,996 Mil. CNH Industrial NV's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.78.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. CNH Industrial NV's Days Inventory for the three months ended in Dec. 2023 was 116.29.

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. CNH Industrial NV's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.88.

CNH Industrial NV Inventory Turnover Historical Data

The historical data trend for CNH Industrial NV'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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CNH Industrial NV Inventory Turnover Chart

CNH Industrial NV Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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3.16

1.70

2.76

3.72

3.25

CNH Industrial NV Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															0.98	0.67	0.72	0.63	0.78

CNH Industrial NV Inventory Turnover Calculation

CNH Industrial NV'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 )
=	16838	/ (	(4811	+	5545)	/	2 )
=	16838	/	5178
=	3.25

CNH Industrial NV'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 )
=	4705	/ (	(6447	+	5545)	/	2 )
=	4705	/	5996
=	0.78

CNH Industrial NV (NYSE:CNHI) 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.

CNH Industrial NV'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
	=	5996	/	4705	*	365 / 4
	=	116.29

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.

CNH Industrial NV'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 )
	=	5996	/	6792
	=	0.88

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.

CNH Industrial NV Inventory Turnover Related Terms

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CNH Industrial NV (CNH Industrial NV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Farm & Heavy Construction Machinery » CNH Industrial NV (NYSE:CNHI) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

1CNHI:Italy 1CNHIm:UK 0QGU:UK 37C:Germany 37C:Germany CNHI:Austria

Address

25 St. James's Street, London, GBR, SW1A 1HA

Website

https://www.cnhindustrial.com

CNH Industrial is a global manufacturer of heavy machinery, with a range of products including agricultural and construction equipment. One of its most recognizable brands, Case IH, has served farmers for generations. The company's products are available through a robust dealer network, which includes over 3,600 dealer and distribution locations globally. CNH's finance arm provides retail financing for equipment to its customers in addition to wholesale financing for dealers, which increases the likelihood of product sales.