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Carnival Corp  (NYSE:CCL) Inventory Turnover: 6.84 (As of May. 2017)

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. Carnival Corp's Cost of Goods Sold for the three months ended in May. 2017 was \$2,436 Mil. Carnival Corp's Total Inventories for the quarter that ended in May. 2017 was \$356 Mil. Carnival Corp's inventory turnover for the quarter that ended in May. 2017 was 6.84.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Carnival Corp's Days Inventory for the three months ended in May. 2017 was 13.34.

Total Inventories can be measured by Days Sales of Inventory (DSI). Carnival Corp's days sales of inventory (DSI) for the three months ended in May. 2017 was 8.23.

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. Carnival Corp's Inventory-to-Revenue for the quarter that ended in May. 2017 was 0.09.

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Carnival Corp Annual Data

 Nov07 Nov08 Nov09 Nov10 Nov11 Nov12 Nov13 Nov14 Nov15 Nov16 Inventory Turnover 27.02 27.87 28.83 27.83 28.78

Carnival Corp Quarterly Data

 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Inventory Turnover 6.97 8.15 7.29 7.13 6.84

Calculation

Carnival Corp's Inventory Turnover for the fiscal year that ended in Nov. 2016 is calculated as

 Inventory Turnover (A: Nov. 2016 ) = Cost of Goods Sold / Total Inventories = Cost of Goods Sold (A: Nov. 2016 ) / ( (Total Inventories (A: Nov. 2015 ) + Total Inventories (A: Nov. 2016 )) / 2 ) = 9383 / ( (330 + 322) / 2 ) = 9383 / 326 = 28.78

Carnival Corp's Inventory Turnover for the quarter that ended in May. 2017 is calculated as

 Inventory Turnover (Q: May. 2017 ) = Cost of Goods Sold / Total Inventories = Cost of Goods Sold (Q: May. 2017 ) / ( (Total Inventories (Q: Feb. 20 ) + Total Inventories (Q: May. 2017 )) / 2 ) = 2436 / ( (361 + 351) / 2 ) = 2436 / 356 = 6.84

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

Carnival Corp's Days Inventory for the three months ended in May. 2017 is calculated as:

 Days Inventory = Total Inventories (Q: May. 2017 ) / Cost of Goods Sold (Q: May. 2017 ) * Days in Period = 356 / 2436 * 365 / 4 = 13.34

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

Carnival Corp's Days Sales of Inventory for the three months ended in May. 2017 is calculated as:

 Days Sales of Inventory (DSI) = Total Inventories (Q: May. 2017 ) / Revenue (Q: May. 2017 ) * Days in Period = 356 / 3945 * 365 / 4 = 8.23

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.

Carnival Corp's Inventory to Revenue for the quarter that ended in May. 2017 is calculated as

 Inventory-to-Revenue = Total Inventories (Q: May. 2017 ) / Revenue (Q: May. 2017 ) = 356 / 3945 = 0.09

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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