Fiat Industrial SpA (MIL:FI) Inventory Turnover : 0.95 (As of Jun. 2013)

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What is Fiat Industrial SpA 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. Fiat Industrial SpA's Cost of Goods Sold for the three months ended in Jun. 2013 was €5,451 Mil. Fiat Industrial SpA's Average Total Inventories for the quarter that ended in Jun. 2013 was €5,741 Mil. Fiat Industrial SpA's Inventory Turnover for the quarter that ended in Jun. 2013 was 0.95.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Fiat Industrial SpA's Days Inventory for the three months ended in Jun. 2013 was 96.10.

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. Fiat Industrial SpA's Inventory-to-Revenue for the quarter that ended in Jun. 2013 was 0.84.

Fiat Industrial SpA Inventory Turnover Historical Data

The historical data trend for Fiat Industrial SpA'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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Fiat Industrial SpA Inventory Turnover Chart

Fiat Industrial SpA Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Inventory Turnover

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4.63

4.31

4.66

4.31

Fiat Industrial SpA Quarterly Data
	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13
Inventory Turnover	Get a 7-Day Free Trial										0.95	0.91	1.12	0.89	0.95

Fiat Industrial SpA Inventory Turnover Calculation

Fiat Industrial SpA's Inventory Turnover for the fiscal year that ended in Dec. 2012 is calculated as

	Inventory Turnover (A: Dec. 2012 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2012 )	/ (	(Total Inventories (A: Dec. 2011 )	+	Total Inventories (A: Dec. 2012 ))	/	count )
=	20925	/ (	(4865	+	4843)	/	2 )
=	20925	/	4854
=	4.31

Fiat Industrial SpA's Inventory Turnover for the quarter that ended in Jun. 2013 is calculated as

	Inventory Turnover (Q: Jun. 2013 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jun. 2013 )	/ (	(Total Inventories (Q: Mar. 2013 )	+	Total Inventories (Q: Jun. 2013 ))	/	count )
=	5451	/ (	(5660	+	5821)	/	2 )
=	5451	/	5740.5
=	0.95

Fiat Industrial SpA (MIL:FI) 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.

Fiat Industrial SpA's Days Inventory for the three months ended in Jun. 2013 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jun. 2013 )	/	Cost of Goods Sold (Q: Jun. 2013 )	*	Days in Period
	=	5740.5	/	5451	*	365 / 4
	=	96.10

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.

Fiat Industrial SpA's Inventory to Revenue for the quarter that ended in Jun. 2013 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jun. 2013 )	/	Revenue (Q: Jun. 2013 )
	=	5740.5	/	6825
	=	0.84

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.

Fiat Industrial SpA Inventory Turnover Related Terms

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Fiat Industrial SpA (MIL:FI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Farm & Heavy Construction Machinery » Fiat Industrial SpA (MIL:FI) » Definitions » Inventory Turnover

Traded in Other Exchanges

N/A

Address

Website

http://www.fiatindustrial.com

Fiat Industrial SpA operates in the capital goods sector. Each of the Group's businesses is a major international player in its respective industry sector: Iveco, CNH-Case New Holland and FPT Industrial. These three sectors design, produce and sell trucks, commercial vehicles, buses, special vehicles (Iveco), tractors, and agricultural and construction equipment (CNH), in addition to engines and transmissions for those vehicles and engines for marine applications (FPT Industrial). Agricultural equipment is sold under the New Holland Agriculture and Case IH and, in the premium segment in Europe, Steyr brands. Construction equipment is sold under the New Holland Construction and Case Construction brands, as well as the Kobelco brand in North America. Iveco designs, manufactures and sells a wide range of light (2.8-6 tons GVW), medium (6-16 tons GVW) and heavy (above 16 tons GVW) commercial vehicles for on-road and off-road use. In addition to its main product offer, the Company also offers after-sales and financing services, in addition to services related to used-vehicles. FPT Industrial is specialized in the design, production and sale of propulsion and transmission systems for on- and off-road trucks and commercial vehicles, as well as engines for marine application and power generation.