Switch to:
Cisco Systems Inc  (NAS:CSCO) Inventory Turnover: 3.08 (As of Jul. 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. Cisco Systems Inc's Cost of Goods Sold for the three months ended in Jul. 2017 was $4,587 Mil. Cisco Systems Inc's Total Inventories for the quarter that ended in Jul. 2017 was $1,491 Mil. Cisco Systems Inc's inventory turnover for the quarter that ended in Jul. 2017 was 3.08.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Cisco Systems Inc's Days Inventory for the three months ended in Jul. 2017 was 29.66.

Total Inventories can be measured by Days Sales of Inventory (DSI). Cisco Systems Inc's days sales of inventory (DSI) for the three months ended in Jul. 2017 was 11.21.

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. Cisco Systems Inc's Inventory-to-Revenue for the quarter that ended in Jul. 2017 was 0.12.


Historical Data

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

* Premium members only.

Cisco Systems Inc Annual Data

Jul08 Jul09 Jul10 Jul11 Jul12 Jul13 Jul14 Jul15 Jul16 Jul17
Inventory Turnover Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.21 12.63 12.11 12.86 12.55

Cisco Systems Inc Quarterly Data

Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17
Inventory Turnover Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.73 3.53 3.36 3.08 2.85

Calculation

Cisco Systems Inc's Inventory Turnover for the fiscal year that ended in Jul. 2017 is calculated as

Inventory Turnover (A: Jul. 2017 )
=Cost of Goods Sold / Total Inventories
=Cost of Goods Sold (A: Jul. 2017 ) / ((Total Inventories (A: Jul. 2016 ) + Total Inventories (A: Jul. 2017 )) / 2 )
=17781 / ((1217 + 1616) / 2 )
=17781 / 1416.5
=12.55

Cisco Systems Inc's Inventory Turnover for the quarter that ended in Jul. 2017 is calculated as

Inventory Turnover (Q: Jul. 2017 )
=Cost of Goods Sold / Total Inventories
=Cost of Goods Sold (Q: Jul. 2017 ) / ((Total Inventories (Q: Apr. 2017 ) + Total Inventories (Q: Jul. 2017 )) / 2 )
=4587 / ((1366 + 1616) / 2 )
=4587 / 1491
=3.08

* 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.

Cisco Systems Inc's Days Inventory for the three months ended in Jul. 2017 is calculated as:

Days Inventory =Total Inventories (Q: Jul. 2017 )/Cost of Goods Sold (Q: Jul. 2017 )*Days in Period
=1491/4587*365 / 4
=29.66

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

Cisco Systems Inc's Days Sales of Inventory for the three months ended in Jul. 2017 is calculated as:

Days Sales of Inventory (DSI)=Total Inventories (Q: Jul. 2017 )/Revenue (Q: Jul. 2017 )*Days in Period
=1491/12133*365 / 4
=11.21

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.

Cisco Systems Inc's Inventory to Revenue for the quarter that ended in Jul. 2017 is calculated as

Inventory-to-Revenue=Total Inventories (Q: Jul. 2017 ) / Revenue (Q: Jul. 2017 )
=1491 / 12133
=0.12

* 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


Headlines

From GuruFocus

From the Internet

Color Kass Bewildered: Best of Kass

- theStreet 2017-11-18 10:00:00

Week Review November 16 2017

- Seekingalpha 2017-11-18 05:00:34

Time for High Beta & Momentum ETFs?

- Zacks 2017-11-17 12:23:00

Cisco Turning Another Ibm

- Seekingalpha 2017-11-17 09:32:20

Stock Market News For Nov 17, 2017

- Zacks 2017-11-17 09:09:00

Thursday Wal Mart Cisco Cramers Mad Money 11 16 17

- Seekingalpha 2017-11-17 07:43:52

40 Dividend Stocks Battling 2018

- Seekingalpha 2017-11-17 03:46:42

Old Technos Back

- Seekingalpha 2017-11-16 22:27:54

PPG Industries: Cramer's Top Takeaways

- theStreet 2017-11-16 19:29:00

Cisco

- theStreet 2017-11-16 15:45:00

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK