Verizon Communications (BSP:VERZ34) Inventory Turnover : 6.14 (As of Sep. 2024)

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What is Verizon Communications 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. Verizon Communications's Cost of Goods Sold for the three months ended in Sep. 2024 was R$73,320 Mil. Verizon Communications's Average Total Inventories for the quarter that ended in Sep. 2024 was R$11,944 Mil. Verizon Communications's Inventory Turnover for the quarter that ended in Sep. 2024 was 6.14.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Verizon Communications's Days Inventory for the three months ended in Sep. 2024 was 14.86.

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. Verizon Communications's Inventory-to-Revenue for the quarter that ended in Sep. 2024 was 0.06.

Verizon Communications Inventory Turnover Historical Data

The historical data trend for Verizon Communications'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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Verizon Communications Inventory Turnover Chart

Verizon Communications Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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40.75

34.94

24.01

20.82

23.79

Verizon Communications Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Inventory Turnover	Get a 7-Day Free Trial															6.55	7.04	6.28	6.63	6.14

Verizon Communications Inventory Turnover Calculation

Verizon Communications's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	268935.322	/ (	(12526.015	+	10078.889)	/	2 )
=	268935.322	/	11302.452
=	23.79

Verizon Communications's Inventory Turnover for the quarter that ended in Sep. 2024 is calculated as

	Inventory Turnover (Q: Sep. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2024 )	/ (	(Total Inventories (Q: Jun. 2024 )	+	Total Inventories (Q: Sep. 2024 ))	/	count )
=	73320.472	/ (	(9915.81	+	13971.869)	/	2 )
=	73320.472	/	11943.8395
=	6.14

Verizon Communications (BSP:VERZ34) 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.

Verizon Communications's Days Inventory for the three months ended in Sep. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2024 )	/	Cost of Goods Sold (Q: Sep. 2024 )	*	Days in Period
	=	11943.8395	/	73320.472	*	365 / 4
	=	14.86

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.

Verizon Communications's Inventory to Revenue for the quarter that ended in Sep. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2024 )	/	Revenue (Q: Sep. 2024 )
	=	11943.8395	/	184574.874
	=	0.06

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.

Verizon Communications Inventory Turnover Related Terms

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Verizon Communications Business Description

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Address

1095 Avenue of the Americas, New York, NY, USA, 10036

Website

https://www.verizon.com

Wireless services account for about 70% of Verizon Communications' total service revenue and nearly all of its operating income. The firm serves about 93 million postpaid and 20 million prepaid phone customers via its nationwide network, making it the largest US wireless carrier. Fixed-line telecom operations include local networks in the Northeast, which reach about 30 million homes and businesses and serve about 8 million broadband customers. Verizon also provides telecom services nationwide to enterprise customers, often using a mixture of its own and other carriers' networks. Verizon agreed to acquire Frontier Communications in September 2024.

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