Raytheon Co (Raytheon Co) Inventory Turnover : 7.92 (As of Dec. 2019)

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What is Raytheon Co 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. Raytheon Co's Cost of Goods Sold for the three months ended in Dec. 2019 was $5,832 Mil. Raytheon Co's Average Total Inventories for the quarter that ended in Dec. 2019 was $737 Mil. Raytheon Co's Inventory Turnover for the quarter that ended in Dec. 2019 was 7.92.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Raytheon Co's Days Inventory for the three months ended in Dec. 2019 was 11.52.

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. Raytheon Co's Inventory-to-Revenue for the quarter that ended in Dec. 2019 was 0.09.

Raytheon Co Inventory Turnover Historical Data

The historical data trend for Raytheon Co'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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Raytheon Co Inventory Turnover Chart

Raytheon Co Annual Data

Trend

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Inventory Turnover

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33.57

28.17

30.52

28.95

29.97

Raytheon Co Quarterly Data
	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19
Inventory Turnover	Get a 7-Day Free Trial															6.91	5.95	5.74	6.34	7.92

Raytheon Co Inventory Turnover Calculation

Raytheon Co's Inventory Turnover for the fiscal year that ended in Dec. 2019 is calculated as

	Inventory Turnover (A: Dec. 2019 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2019 )	/ (	(Total Inventories (A: Dec. 2018 )	+	Total Inventories (A: Dec. 2019 ))	/	count )
=	21413	/ (	(758	+	671)	/	2 )
=	21413	/	714.5
=	29.97

Raytheon Co's Inventory Turnover for the quarter that ended in Dec. 2019 is calculated as

	Inventory Turnover (Q: Dec. 2019 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2019 )	/ (	(Total Inventories (Q: Sep. 2019 )	+	Total Inventories (Q: Dec. 2019 ))	/	count )
=	5832	/ (	(802	+	671)	/	2 )
=	5832	/	736.5
=	7.92

Raytheon Co (NYSE:RTN) 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.

Raytheon Co's Days Inventory for the three months ended in Dec. 2019 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2019 )	/	Cost of Goods Sold (Q: Dec. 2019 )	*	Days in Period
	=	736.5	/	5832	*	365 / 4
	=	11.52

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.

Raytheon Co's Inventory to Revenue for the quarter that ended in Dec. 2019 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2019 )	/	Revenue (Q: Dec. 2019 )
	=	736.5	/	7842
	=	0.09

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.

Raytheon Co Inventory Turnover Related Terms

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Raytheon Co (Raytheon Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Raytheon Co (NYSE:RTN) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

870 Winter Street, Waltham, MA, USA, 02451

Website

https://www.raytheon.com

Raytheon is a U.S. defense contractor that posted just over $27 billion in sales during 2018. It operates through five segments: integrated defense systems, intelligence and information, missile systems, space and airborne systems, and a cybersecurity business branded Forcepoint. Sales to the U.S. government account for about 70% of consolidated revenue. Based in Waltham, Massachusetts, Raytheon employs more than 60,000 people.

Executives

William Spivey	director
Letitia A Long	director	C/O CORPORATE OFFICE PROPERTIES TRUST, 6711 COLUMBIA GATEWAY DRIVE, #300, COLUMBIA MD 21046
David C Wajsgras	officer: Vice President	870 WINTER STREET, WALTHAM MA 02451
Marta R Stewart	director	C/O NORFOLK SOUTHERN CORP, THREE COMMERCIAL PL, NORFOLK VA 23510-9219
Frank R Jimenez	officer: VP, General Counsel, Secretary	GE HEALTHCARE TECHNOLOGIES INC., 500 W. MONROE ST., CHICAGO IL 606061
Michael J Wood	officer: VP, Controller & CAO	870 WINTER STREET, WALTHAM MA 02451
Ellen M Pawlikowski	director	870 WINTER STREET, WALTHAM MA 02451
Robert O Work	director	870 WINTER STREET, WALTHAM MA 02451
Tracy A Atkinson	director	MFS INVESTMENT MANAGEMENT, 500 BOYLSTON ST., BOSTON MA 02116
Roy Azevedo	officer: Vice President	870 WINTER STREET, WALTHAM MA 02451
Wesley D Kremer	officer: Vice President	870 WINTER STREET, WALTHAM MA 02451
Thomas A Kennedy	director, officer: Chairman and CEO	870 WINTER STREET, WALTHAM MA 02451
George Oliver	director	5757 N. GREEN BAY AVENUE, MILWAUKEE WI 53209
Winnefeld James A Jr	director	870 WINTER STREET, WALTHAM MA 02451
Robert E Beauchamp	director	2101 CITYWEST BLVD, HOUSTON TX 77042-2827