Millicom International Cellular (Millicom International Cellular) Inventory Turnover

: 7.11 (As of Dec. 2023)

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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. Millicom International Cellular's Cost of Goods Sold for the three months ended in Dec. 2023 was $391 Mil. Millicom International Cellular's Average Total Inventories for the quarter that ended in Dec. 2023 was $55 Mil. Millicom International Cellular's Inventory Turnover for the quarter that ended in Dec. 2023 was 7.11.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Millicom International Cellular's Days Inventory for the three months ended in Dec. 2023 was 12.84.

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. Millicom International Cellular's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.04.

Millicom International Cellular Inventory Turnover Historical Data

The historical data trend for Millicom International Cellular'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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Millicom International Cellular Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

33.80

30.72

23.94

25.97

30.76

Millicom International Cellular Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover																6.20	6.13	5.55	5.43	7.11

Millicom International Cellular Inventory Turnover Calculation

Millicom International Cellular'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 )
=	1507	/ (	(53	+	45)	/	2 )
=	1507	/	49
=	30.76

Millicom International Cellular'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 )
=	391	/ (	(65	+	45)	/	2 )
=	391	/	55
=	7.11

Millicom International Cellular (NAS:TIGO) 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.

Millicom International Cellular'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
	=	55	/	391	*	365 / 4
	=	12.84

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.

Millicom International Cellular'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 )
	=	55	/	1475
	=	0.04

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.

Millicom International Cellular Inventory Turnover Related Terms

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Millicom International Cellular (Millicom International Cellular) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Millicom International Cellular SA (NAS:TIGO) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

TIGO SDB:Sweden TIGOs:UK 0GRK:UK M4M1:Germany M4M1:Germany M4M:Germany

Address

2, Rue du Fort Bourbon, Luxembourg, LUX, L-1249

Website

https://www.millicom.com

Millicom offers wireless and fixed-line telecom services primarily in smaller, less congested markets or in less developed countries in Latin America. Countries served include Bolivia (100% owned), Nicaragua (100%), Panama (100%), El Salvador (100%), Guatemala (100%), Paraguay (100%), Colombia (50%), Costa Rica (100%) and Honduras (67% but not controlled or consolidated in the firm's financial statements). The firm's fixed-line networks reach nearly 13 million homes while its wireless networks cover about 120 million people. Increasingly, Millicom offers a converged package that may include fixed-line phone, broadband, and pay television in conjunction with wireless services. The firm plans to carve out its infrastructure assets and mobile financial services business in 2023.