Time Warner (FRA:AOL1) Inventory Turnover : 2.06 (As of Mar. 2018)

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What is Time Warner 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. Time Warner's Cost of Goods Sold for the three months ended in Mar. 2018 was €3,825 Mil. Time Warner's Average Total Inventories for the quarter that ended in Mar. 2018 was €1,854 Mil. Time Warner's Inventory Turnover for the quarter that ended in Mar. 2018 was 2.06.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Time Warner's Days Inventory for the three months ended in Mar. 2018 was 44.23.

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. Time Warner's Inventory-to-Revenue for the quarter that ended in Mar. 2018 was 0.29.

Time Warner Inventory Turnover Historical Data

The historical data trend for Time Warner'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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Time Warner Inventory Turnover Chart

Time Warner Annual Data

Trend

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Inventory Turnover

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7.92

9.97

9.93

8.71

7.49

Time Warner Quarterly Data
	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18
Inventory Turnover	Get a 7-Day Free Trial															2.13	2.04	1.80	2.26	2.06

Time Warner Inventory Turnover Calculation

Time Warner's Inventory Turnover for the fiscal year that ended in Dec. 2017 is calculated as

	Inventory Turnover (A: Dec. 2017 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2017 )	/ (	(Total Inventories (A: Dec. 2016 )	+	Total Inventories (A: Dec. 2017 ))	/	count )
=	14911.715	/ (	(1954.776	+	2028.845)	/	2 )
=	14911.715	/	1991.8105
=	7.49

Time Warner's Inventory Turnover for the quarter that ended in Mar. 2018 is calculated as

	Inventory Turnover (Q: Mar. 2018 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2018 )	/ (	(Total Inventories (Q: Dec. 2017 )	+	Total Inventories (Q: Mar. 2018 ))	/	count )
=	3825.487	/ (	(2028.845	+	1679.581)	/	2 )
=	3825.487	/	1854.213
=	2.06

Time Warner (FRA:AOL1) 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.

Time Warner's Days Inventory for the three months ended in Mar. 2018 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2018 )	/	Cost of Goods Sold (Q: Mar. 2018 )	*	Days in Period
	=	1854.213	/	3825.487	*	365 / 4
	=	44.23

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.

Time Warner's Inventory to Revenue for the quarter that ended in Mar. 2018 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2018 )	/	Revenue (Q: Mar. 2018 )
	=	1854.213	/	6484.756
	=	0.29

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.

Time Warner Inventory Turnover Related Terms

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Time Warner (FRA:AOL1) Business Description

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http://www.timewarner.com

Time Warner is a pure-play entertainment company that owns several television networks, including HBO, CNN, TNT, and the CW. The filmed entertainment segment creates and distributes movies and television programming for internal and external distribution outlets. Warner Bros. and New Line Cinema combine to form the largest filmmaker in the world. The company owns a deep and valuable content library that includes popular movie franchises such as DC Comics and Harry Potter and television programs such as Friends and The Big Bang Theory.

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