Versum Materials (Versum Materials) Inventory Turnover : 0.91 (As of Jun. 2019)

View and export this data going back to 2016. Start your Free Trial

What is Versum Materials Inventory Turnover?

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. Versum Materials's Cost of Goods Sold for the three months ended in Jun. 2019 was $186 Mil. Versum Materials's Average Total Inventories for the quarter that ended in Jun. 2019 was $205 Mil. Versum Materials's Inventory Turnover for the quarter that ended in Jun. 2019 was 0.91.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Versum Materials's Days Inventory for the three months ended in Jun. 2019 was 100.64.

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. Versum Materials's Inventory-to-Revenue for the quarter that ended in Jun. 2019 was 0.63.

Versum Materials Inventory Turnover Historical Data

The historical data trend for Versum Materials'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.

* Premium members only.

Versum Materials Inventory Turnover Chart

Versum Materials Annual Data

Trend

Sep13

Sep14

Sep15

Sep16

Sep17

Sep18

Inventory Turnover

Get a 7-Day Free Trial

4.90

4.85

4.31

4.42

4.67

Versum Materials Quarterly Data
	Sep13	Sep14	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19
Inventory Turnover	Get a 7-Day Free Trial														1.19	1.17	1.07	0.97	0.91

Versum Materials Inventory Turnover Calculation

Versum Materials's Inventory Turnover for the fiscal year that ended in Sep. 2018 is calculated as

	Inventory Turnover (A: Sep. 2018 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Sep. 2018 )	/ (	(Total Inventories (A: Sep. 2017 )	+	Total Inventories (A: Sep. 2018 ))	/	count )
=	788.1	/ (	(160.4	+	177.1)	/	2 )
=	788.1	/	168.75
=	4.67

Versum Materials's Inventory Turnover for the quarter that ended in Jun. 2019 is calculated as

	Inventory Turnover (Q: Jun. 2019 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jun. 2019 )	/ (	(Total Inventories (Q: Mar. 2019 )	+	Total Inventories (Q: Jun. 2019 ))	/	count )
=	185.6	/ (	(203.1	+	206.3)	/	2 )
=	185.6	/	204.7
=	0.91

Versum Materials (NYSE:VSM) 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.

Versum Materials's Days Inventory for the three months ended in Jun. 2019 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jun. 2019 )	/	Cost of Goods Sold (Q: Jun. 2019 )	*	Days in Period
	=	204.7	/	185.6	*	365 / 4
	=	100.64

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.

Versum Materials's Inventory to Revenue for the quarter that ended in Jun. 2019 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jun. 2019 )	/	Revenue (Q: Jun. 2019 )
	=	204.7	/	324.3
	=	0.63

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.

Versum Materials Inventory Turnover Related Terms

Thank you for viewing the detailed overview of Versum Materials's Inventory Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.

Versum Materials (Versum Materials) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Versum Materials Inc (NYSE:VSM) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

8555 South River Parkway, Tempe, AZ, USA, 85284

Website

https://www.versummaterials.com

Versum Materials is a leading global provider of electronic materials for the integrated circuit and flat-panel display markets. It supplies specialty chemicals and materials, high-purity specialty gases, proprietary delivery systems, and related services. The semiconductor industry accounts for 85% of sales. Versum generated fiscal 2017 revenue and adjusted EBIT of $1,127 million and $326 million, respectively. Versum employs almost 2,000 and serves 250 customers from its global network of 14 production sites and six R&D facilities.

Executives

Alejandro Daniel Wolff	director	ALBEMARLE CORP., 451 FLORIDA ST, BATON ROUGE LA 70801
Seifi Ghasemi	director	100 OVERLOOK CENTER, PRINCETON NJ 08540
Guillermo Novo	director, officer: President and CEO	AIR PRODUCTS AND CHEMICALS, INC., 7201 HAMILTON BOULEVARD, ALLENTOWN PA 18195
Susan C Schnabel	director	C/O CREDIT SUISSE FIRST BOSTON, 11 MADISON AVE, NEW YORK NY 10010
Yi Hyon Paik	director	ROHM AND HAAS COMPANY, 100 INDEPENDENCE MALL WEST, PHILADELPHIA PA 19106
Jacques M Croisetiere	director	C/O MORTON INTERNATIONAL INC, 100 N RIVERSIDE PLZ, CHICAGO IL 60606