Tyco International (BUE:JCI) Inventory Turnover: 2.26 (As of Jun. 2016)

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What is Tyco International Inventory Turnover?

Tyco International BUE:JCI Inventory Turnover is 2.26 as of Jun. 2016.

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. Tyco International's Cost of Goods Sold for the three months ended in Jun. 2016 was ARS21,445 Mil. Tyco International's Average Total Inventories for the quarter that ended in Jun. 2016 was ARS9,478 Mil. Tyco International's Inventory Turnover for the quarter that ended in Jun. 2016 was 2.26.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Tyco International's Days Inventory for the three months ended in Jun. 2016 was 40.33.

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. Tyco International's Inventory-to-Revenue for the quarter that ended in Jun. 2016 was 0.28.

Tyco International  (BUE:JCI) 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.

Tyco International's Days Inventory for the three months ended in Jun. 2016 is calculated as:

Days Inventory =Average Total Inventories (Q: Jun. 2016 )/Cost of Goods Sold (Q: Jun. 2016 )*Days in Period
=9477.6915/21444.906*365 / 4
=40.33

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.

Tyco International's Inventory to Revenue for the quarter that ended in Jun. 2016 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Jun. 2016 ) / Revenue (Q: Jun. 2016 )
=9477.6915 / 34236.359
=0.28

* 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.

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.

Tyco International Inventory Turnover Related Terms

Tyco International Inventory Turnover Historical Data

* Premium members only.

The historical data trend for Tyco International'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.

Tyco International Inventory Turnover Chart

Tyco International Annual Data
Trend Sep06 Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.26 11.31 10.98 12.30 10.57

Tyco International Quarterly Data
Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16
Inventory Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.34 2.44 2.72 2.37 2.26

Tyco International Inventory Turnover Calculation

Tyco International's Inventory Turnover for the fiscal year that ended in Sep. 2015 is calculated as

Inventory Turnover (A: Sep. 2015 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Sep. 2015 ) / ((Total Inventories (A: Sep. 2014 ) + Total Inventories (A: Sep. 2015 )) / count )
=58952.421 / ((5261.875 + 5895.242) / 2 )
=58952.421 / 5578.5585
=10.57

Tyco International's Inventory Turnover for the quarter that ended in Jun. 2016 is calculated as

Inventory Turnover (Q: Jun. 2016 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Jun. 2016 ) / ((Total Inventories (Q: Mar. 2016 ) + Total Inventories (Q: Jun. 2016 )) / count )
=21444.906 / ((9784.68 + 9170.703) / 2 )
=21444.906 / 9477.6915
=2.26

* 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.

Frequently Asked Questions Learn more about Inventory Turnover →
What does a Inventory Turnover of 2.26 mean?
Tyco International (BUE:JCI) has a Inventory Turnover of 2.26 as of Jun. 2016. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Tyco International and its competitors.
Is Tyco International's Inventory Turnover too high?
Tyco International's current Inventory Turnover is 2.26.
How does Tyco International's Inventory Turnover compare to ALLE and ADT?
Tyco International's Inventory Turnover of 2.26 can be compared against companies in the Business Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Inventory Turnover for a Business Services company?
A good Inventory Turnover depends on the Business Services industry context. However, Inventory Turnover should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Inventory Turnover mean?
A high Inventory Turnover can signal that a stock is expensive relative to its fundamentals. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Tyco International and its competitors. Tyco International's current Inventory Turnover is 2.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tyco International stock overvalued right now?
Tyco International (BUE:JCI) has a current Inventory Turnover of 2.26. The current Inventory Turnover is 2.26. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Inventory Turnover calculated?
Inventory Turnover is calculated from a company's financial statements. For Tyco International (BUE:JCI), the current Inventory Turnover is 2.26 as of Jun. 2016. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Tyco International Business Description

Address Unit 1202 Building 1000 City Gate, Mahon, Cork, IRL, 8212
Tyco International PLC is a provider of security products and services, fire detection and suppression products and services, and life safety products. Brand names include Tyco, Tyco Integrated Security, SimplexGrinnell, Sensormatic, Wormald, Scott, and ADT (outside North American markets). The revenue breakdown is 37% North America installation and services, 38% rest of world installation and services, and 25% global products. Tyco completed its spin-off of ADT and the flow control business in September 2012, five years after its prior three-way split.