Switch to:
United Continental Holdings Inc  (NYSE:UAL) Inventory Turnover: 3.80 (As of Jun. 2017)

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. United Continental Holdings Inc's Cost of Goods Sold for the three months ended in Jun. 2017 was \$3,383 Mil. United Continental Holdings Inc's Total Inventories for the quarter that ended in Jun. 2017 was \$891 Mil. United Continental Holdings Inc's inventory turnover for the quarter that ended in Jun. 2017 was 3.80.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. United Continental Holdings Inc's Days Inventory for the three months ended in Jun. 2017 was 24.03.

Total Inventories can be measured by Days Sales of Inventory (DSI). United Continental Holdings Inc's days sales of inventory (DSI) for the three months ended in Jun. 2017 was 8.13.

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. United Continental Holdings Inc's Inventory-to-Revenue for the quarter that ended in Jun. 2017 was 0.09.

Historical Data

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

United Continental Holdings Inc Annual Data

 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Inventory Turnover 29.46 27.42 28.44 20.54 15.65

United Continental Holdings Inc Quarterly Data

 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Inventory Turnover 4.05 4.07 3.81 3.69 3.80

Calculation

United Continental Holdings Inc's Inventory Turnover for the fiscal year that ended in Dec. 2016 is calculated as

 Inventory Turnover (A: Dec. 2016 ) = Cost of Goods Sold / Total Inventories = Cost of Goods Sold (A: Dec. 2016 ) / ( (Total Inventories (A: Dec. 2015 ) + Total Inventories (A: Dec. 2016 )) / 2 ) = 12604 / ( (738 + 873) / 2 ) = 12604 / 805.5 = 15.65

United Continental Holdings Inc's Inventory Turnover for the quarter that ended in Jun. 2017 is calculated as

 Inventory Turnover (Q: Jun. 2017 ) = Cost of Goods Sold / Total Inventories = Cost of Goods Sold (Q: Jun. 2017 ) / ( (Total Inventories (Q: Mar. 2017 ) + Total Inventories (Q: Jun. 2017 )) / 2 ) = 3383 / ( (900 + 882) / 2 ) = 3383 / 891 = 3.80

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

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.

United Continental Holdings Inc's Days Inventory for the three months ended in Jun. 2017 is calculated as:

 Days Inventory = Total Inventories (Q: Jun. 2017 ) / Cost of Goods Sold (Q: Jun. 2017 ) * Days in Period = 891 / 3383 * 365 / 4 = 24.03

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

United Continental Holdings Inc's Days Sales of Inventory for the three months ended in Jun. 2017 is calculated as:

 Days Sales of Inventory (DSI) = Total Inventories (Q: Jun. 2017 ) / Revenue (Q: Jun. 2017 ) * Days in Period = 891 / 10000 * 365 / 4 = 8.13

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.

United Continental Holdings Inc's Inventory to Revenue for the quarter that ended in Jun. 2017 is calculated as

 Inventory-to-Revenue = Total Inventories (Q: Jun. 2017 ) / Revenue (Q: Jun. 2017 ) = 891 / 10000 = 0.09

* 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.

Related Terms

From the Internet

###### United Continental Holdings Inc 2017 Q3 Results Earnings Call Slides

- Seekingalpha 2017-10-19 15:58:57

###### United (UAL) Shares Plummet, Airline Stocks Follow

- Zacks 2017-10-19 12:04:00

###### Stock Market News For Oct 19, 2017

- Zacks 2017-10-19 09:00:00

###### United Airlines Outlook - Analysts Say 'Good Enough' and 'OK'

- theStreet 2017-10-19 08:25:00

###### Huntsman, Alaska Air, United Air Lines, American Express and eBay highlighted as Zacks Bull and Bear of the Day

- Zacks 2017-10-19 07:52:00

###### As Dow clings to 23K, this broader benchmark is running into a roadblock

- MarketWatch 2017-10-19 07:29:00

###### Profit Plunges Again at Floundering United Continental Holdings, Inc.

- Fool 2017-10-19 07:18:00

###### Wall Street Breakfast Yellen Heads Oval Office

- Seekingalpha 2017-10-19 07:00:44

###### United Continental (UAL) Q3 Earnings & Revenues Top Estimates

- Zacks 2017-10-19 05:00:00

###### Hurricanes Barely Slow United Airlines

- Seekingalpha 2017-10-19 01:50:44

###### United Airlines Lowers Bar Easily Hops

- Seekingalpha 2017-10-18 18:41:52

###### Q3 Earnings Reports Follow Record Market Highs

- Zacks 2017-10-18 16:44:00

###### United Continental earnings beat despite weather-related cancellations

- MarketWatch 2017-10-18 16:33:00

###### United (UAL) Q3 Earnings In-Line, PRASM Down 3.7%

- Zacks 2017-10-18 16:32:00

###### Spirit Airlines Tries a New Tack as Competition Intensifies

- Fool 2017-10-18 14:05:00

###### United to report earnings after the bell

- cnbc 2017-10-18 12:41:29

###### Kyle Bass says this will be the first sign of a bigger market meltdown

- MarketWatch 2017-10-18 07:25:00

###### Futures point to a positive open as American Express, eBay, US Bancorp earnings take center stage

- cnbc 2017-10-18 06:42:04

###### There Is Still Room to the Upside in This Market: Market Recon

- theStreet 2017-10-18 06:35:00

###### IBM, China and Dow 23,000 - 5 Things You Must Know Before the Market Opens Wednesday

- theStreet 2017-10-18 06:04:00

###### European Stocks Grind Higher; Wall Street Futures Point to Dow 23,000

- theStreet 2017-10-18 05:24:00

###### Hawaiian Airlines CEO shrugs off 'Southwest Effect' as budget carrier plans to enter market

- cnbc 2017-10-17 17:24:44

###### Airline Stock Roundup: DAL Q3 Earnings Beat, JBLU Revises View

- Zacks 2017-10-17 15:48:00

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to \$400 per referral. ( Learn More)