Terna SpA (WBO:TRN) Inventory Turnover : 1.31 (As of Sep. 2023)

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What is Terna SpA 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. Terna SpA's Cost of Goods Sold for the three months ended in Sep. 2023 was €134 Mil. Terna SpA's Average Total Inventories for the quarter that ended in Sep. 2023 was €102 Mil. Terna SpA's Inventory Turnover for the quarter that ended in Sep. 2023 was 1.31.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Terna SpA's Days Inventory for the three months ended in Sep. 2023 was 69.58.

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. Terna SpA's Inventory-to-Revenue for the quarter that ended in Sep. 2023 was 0.13.

Terna SpA Inventory Turnover Historical Data

The historical data trend for Terna SpA'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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Terna SpA Inventory Turnover Chart

Terna SpA Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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5.78

5.97

6.23

6.86

4.30

Terna SpA Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															2.46	1.35	1.43	1.31	-

Terna SpA Inventory Turnover Calculation

Terna SpA's Inventory Turnover for the fiscal year that ended in Dec. 2022 is calculated as

	Inventory Turnover (A: Dec. 2022 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2022 )	/ (	(Total Inventories (A: Dec. 2021 )	+	Total Inventories (A: Dec. 2022 ))	/	count )
=	524.7	/ (	(69.9	+	83)	/	2 )
=	524.7	/	76.45
=	6.86

Terna SpA's Inventory Turnover for the quarter that ended in Sep. 2023 is calculated as

	Inventory Turnover (Q: Sep. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2023 )	/ (	(Total Inventories (Q: Jun. 2023 )	+	Total Inventories (Q: Sep. 2023 ))	/	count )
=	133.9	/ (	(102.1	+	0)	/	1 )
=	133.9	/	102.1
=	1.31

Terna SpA (WBO:TRN) 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.

Terna SpA's Days Inventory for the three months ended in Sep. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2023 )	/	Cost of Goods Sold (Q: Sep. 2023 )	*	Days in Period
	=	102.1	/	133.9	*	365 / 4
	=	69.58

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.

Terna SpA's Inventory to Revenue for the quarter that ended in Sep. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	102.1	/	761.8
	=	0.13

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.

Terna SpA Inventory Turnover Related Terms

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Terna SpA (WBO:TRN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Terna SpA (WBO:TRN) » Definitions » Inventory Turnover

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Traded in Other Exchanges

TEZNY:USA TERRF:USA TRN:Italy TRNm:UK 0LBM:UK UEI:Germany

Address

Viale Egidio Galbani, 70, Rome, ITA, 00156

Website

https://www.terna.it

Terna SpA is an electricity transmission system operator that owns virtually all of the Italian National Transmission Grid. With a monopoly under an Italian government license, Terna transmits and dispatches electricity throughout the country. It is also responsible for the planning, construction, and maintenance of the nation's electrical grid. Terna segments its operations into its Regulated Activities, Non-Regulated Activities, and International Activities. The company generates the vast majority of its revenue from charging transmission fees as a part of its Regulated Activities. Under its Non-Regulated Activities, Terna mainly produces and sells electricity transformers. The company has also made efforts to expand its operations into Italy's neighboring countries and North Africa.