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Cavium (Cavium) Inventory Turnover : 1.15 (As of Mar. 2018)


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What is Cavium 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. Cavium's Cost of Goods Sold for the three months ended in Mar. 2018 was $113.1 Mil. Cavium's Average Total Inventories for the quarter that ended in Mar. 2018 was $97.9 Mil. Cavium's Inventory Turnover for the quarter that ended in Mar. 2018 was 1.15.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Cavium's Days Inventory for the three months ended in Mar. 2018 was 79.02.

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. Cavium's Inventory-to-Revenue for the quarter that ended in Mar. 2018 was 0.42.


Cavium Inventory Turnover Historical Data

The historical data trend for Cavium'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.

* Premium members only.

Cavium Inventory Turnover Chart

Cavium Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.49 2.83 2.91 3.82 4.54

Cavium Quarterly Data
Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
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 1.25 1.16 1.21 1.27 1.15

Cavium Inventory Turnover Calculation

Cavium's Inventory Turnover for the fiscal year that ended in Dec. 2017 is calculated as

Inventory Turnover (A: Dec. 2017 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2017 ) / ((Total Inventories (A: Dec. 2016 ) + Total Inventories (A: Dec. 2017 )) / count )
=484.434 / ((119.692 + 93.674) / 2 )
=484.434 / 106.683
=4.54

Cavium's Inventory Turnover for the quarter that ended in Mar. 2018 is calculated as

Inventory Turnover (Q: Mar. 2018 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Mar. 2018 ) / ((Total Inventories (Q: Dec. 2017 ) + Total Inventories (Q: Mar. 2018 )) / count )
=113.08 / ((93.674 + 102.171) / 2 )
=113.08 / 97.9225
=1.15

* 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.


Cavium  (NAS:CAVM) 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.

Cavium's Days Inventory for the three months ended in Mar. 2018 is calculated as:

Days Inventory =Average Total Inventories (Q: Mar. 2018 )/Cost of Goods Sold (Q: Mar. 2018 )*Days in Period
=97.9225/113.08*365 / 4
=79.02

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.

Cavium's Inventory to Revenue for the quarter that ended in Mar. 2018 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Mar. 2018 ) / Revenue (Q: Mar. 2018 )
=97.9225 / 230.761
=0.42

* 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.


Cavium Inventory Turnover Related Terms

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Cavium (Cavium) Business Description

Traded in Other Exchanges
N/A
Address
Cavium provides microprocessors used in various applications in networking, communications, and data center applications. While boasting Cisco, Amazon, and Nokia Solutions and Networks as key customers, Cavium has developed an ARM-based server chip, ThunderX, to compete against Intel's Xeon server processors.
Executives
Edward H. Frank director C/O FUSION-IO, INC., 2855 E. COTTONWOOD PARKWAY, SUITE 100, SALT LAKE CITY UT 84121
Sanjay Mehrotra director C/O WESTERN DIGITAL CORPORATION, 3355 MICHELSON DRIVE, SUITE 100, IRVINE CA 92612
Anthony S Thornley director 2180 RUTHERFORD ROAD, CARLSBAD CA 92008
Brad W Buss director 198 CHAMPION COURT, SAN JOSE CA 95134
Muhammad Raghib Hussain officer: Chief Operating Officer 5488 MARVELL LANE, SANTA CLARA CA 95054
Syed Ali director, officer: Pres., CEO, Chairman of Board 5488 MARVELL LANE SANTA CLARA CA 95054
Arthur D Chadwick officer: VP Finance & Admin CFO 280 N BERNARDO AVE, MOUNTAIN VIEW CA 94043
Vincent P Pangrazio officer: SVP, Gen. Counsel & Secretary C/O CAVIUM NETWORKS, INC., 805 EAST MIDDLEFIELD ROAD, MOUNTAIN VIEW CA 94043
Kris Chellam director 2100 LOGIC DR SAN JOSE CA 95124
Sandeep Vij officer: VP Strategic Markets & Bus Dev C/O XILINX INC, 2100 LOGIC DRIVE, SAN JOSE CA 95124
Mv Management Ix Llc 10 percent owner 2884 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Menlo Ventures Ix Lp 10 percent owner 2884 SAND HILL RD, SUITE 100, MENLO PARK CA 94025
Mmef Ix Lp 10 percent owner 2884 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Menlo Entrepreneurs Fund Ix Lp 10 percent owner 3000 SAND HILL ROAD, BUILDING 4, SUITE 100, MENLO PARK CA 94025
Menlo Entrepreneurs Fund Ix A Lp 10 percent owner 2884 SAND HILL RD, SUITE 100, MENLO PARK CA 94025

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