Switch to:

# Time Warner Inventory Turnover

: 2.11 (As of Mar. 2018)
View and export this data going back to 1992. Start your Free Trial

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. Time Warner's Cost of Goods Sold for the three months ended in Mar. 2018 was \$4,717 Mil. Time Warner's Total Inventories for the quarter that ended in Mar. 2018 was \$2,236 Mil. Time Warner's Inventory Turnover for the quarter that ended in Mar. 2018 was 2.11.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Time Warner's Days Inventory for the three months ended in Mar. 2018 was 43.26.

Total Inventories can be measured by Days Sales of Inventory (DSI). Time Warner's days sales of inventory (DSI) for the three months ended in Mar. 2018 was 25.52.

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. Time Warner's Inventory-to-Revenue for the quarter that ended in Mar. 2018 was 0.28.

## Time Warner 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.

 Time Warner Annual Data Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Inventory Turnover     8.11 9.48 9.36 8.59 7.91

## Time Warner Inventory Turnover Calculation

Time Warner's Inventory Turnover for the fiscal year that ended in Dec. 2017 is calculated as

 Inventory Turnover (A: Dec. 2017 ) = Cost of Goods Sold / Total Inventories = Cost of Goods Sold (A: Dec. 2017 ) / ( (Total Inventories (A: Dec. 2016 ) + Total Inventories (A: Dec. 2017 )) / count ) = 17647 / ( (2062 + 2401) / 2 ) = 17647 / 2231.5 = 7.91

Time Warner's Inventory Turnover for the quarter that ended in Mar. 2018 is calculated as

 Inventory Turnover (Q: Mar. 2018 ) = Cost of Goods Sold / Total Inventories = Cost of Goods Sold (Q: Mar. 2018 ) / ( (Total Inventories (Q: Dec. 2017 ) + Total Inventories (Q: Mar. 2018 )) / count ) = 4717 / ( (2401 + 2071) / 2 ) = 4717 / 2236 = 2.11

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

Time Warner  (NYSE:TWX) 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.

Time Warner's Days Inventory for the three months ended in Mar. 2018 is calculated as:

 Days Inventory = Total Inventories (Q: Mar. 2018 ) / Cost of Goods Sold (Q: Mar. 2018 ) * Days in Period = 2236 / 4717 * 365 / 4 = 43.26

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

Time Warner's Days Sales of Inventory for the three months ended in Mar. 2018 is calculated as:

 Days Sales of Inventory (DSI) = Total Inventories (Q: Mar. 2018 ) / Revenue (Q: Mar. 2018 ) * Days in Period = 2236 / 7996 * 365 / 4 = 25.52

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.

Time Warner's Inventory to Revenue for the quarter that ended in Mar. 2018 is calculated as

 Inventory-to-Revenue = Total Inventories (Q: Mar. 2018 ) / Revenue (Q: Mar. 2018 ) = 2236 / 7996 = 0.28

* 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.