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# The Walt Disney Co Inventory Turnover

: 5.11 (As of Jun. 2020)
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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. The Walt Disney Co's Cost of Goods Sold for the three months ended in Jun. 2020 was \$7,896 Mil. The Walt Disney Co's Total Inventories for the quarter that ended in Jun. 2020 was \$1,545 Mil. The Walt Disney Co's Inventory Turnover for the quarter that ended in Jun. 2020 was 5.11.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. The Walt Disney Co's Days Inventory for the three months ended in Jun. 2020 was 17.85.

Total Inventories can be measured by Days Sales of Inventory (DSI). The Walt Disney Co's days sales of inventory (DSI) for the three months ended in Jun. 2020 was 11.97.

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. The Walt Disney Co's Inventory-to-Revenue for the quarter that ended in Jun. 2020 was 0.13.

## The Walt Disney Co Inventory Turnover Historical Data

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

 The Walt Disney Co Annual Data Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Inventory Turnover     18.04 20.26 21.94 23.67 27.63

## The Walt Disney Co Inventory Turnover Calculation

The Walt Disney Co's Inventory Turnover for the fiscal year that ended in Sep. 2019 is calculated as

 Inventory Turnover (A: Sep. 2019 ) = Cost of Goods Sold / Total Inventories = Cost of Goods Sold (A: Sep. 2019 ) / ( (Total Inventories (A: Sep. 2018 ) + Total Inventories (A: Sep. 2019 )) / count ) = 42018 / ( (1392 + 1649) / 2 ) = 42018 / 1520.5 = 27.63

The Walt Disney Co's Inventory Turnover for the quarter that ended in Jun. 2020 is calculated as

 Inventory Turnover (Q: Jun. 2020 ) = Cost of Goods Sold / Total Inventories = Cost of Goods Sold (Q: Jun. 2020 ) / ( (Total Inventories (Q: Mar. 2020 ) + Total Inventories (Q: Jun. 2020 )) / count ) = 7896 / ( (1531 + 1559) / 2 ) = 7896 / 1545 = 5.11

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

The Walt Disney Co  (NYSE:DIS) 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.

The Walt Disney Co's Days Inventory for the three months ended in Jun. 2020 is calculated as:

 Days Inventory = Total Inventories (Q: Jun. 2020 ) / Cost of Goods Sold (Q: Jun. 2020 ) * Days in Period = 1545 / 7896 * 365 / 4 = 17.85

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

The Walt Disney Co's Days Sales of Inventory for the three months ended in Jun. 2020 is calculated as:

 Days Sales of Inventory (DSI) = Total Inventories (Q: Jun. 2020 ) / Revenue (Q: Jun. 2020 ) * Days in Period = 1545 / 11779 * 365 / 4 = 11.97

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.

The Walt Disney Co's Inventory to Revenue for the quarter that ended in Jun. 2020 is calculated as

 Inventory-to-Revenue = Total Inventories (Q: Jun. 2020 ) / Revenue (Q: Jun. 2020 ) = 1545 / 11779 = 0.13

* 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.