DCEL (Digicel Group) Inventory Turnover: 16.25 (As of Mar. 2015)

What is Digicel Group Inventory Turnover?

Digicel Group DCEL Inventory Turnover is 16.25 as of Mar. 2015.

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. Digicel Group's Cost of Goods Sold for the six months ended in Mar. 2015 was $753.86 Mil. Digicel Group's Average Total Inventories for the quarter that ended in Mar. 2015 was $46.40 Mil. Digicel Group's Inventory Turnover for the quarter that ended in Mar. 2015 was 16.25.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Digicel Group's Days Inventory for the six months ended in Mar. 2015 was 11.23.

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. Digicel Group's Inventory-to-Revenue for the quarter that ended in Mar. 2015 was 0.02.

Digicel Group (NYSE:DCEL) 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.

Digicel Group's Days Inventory for the six months ended in Mar. 2015 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2015 )	/	Cost of Goods Sold (Q: Mar. 2015 )	*	Days in Period
	=	46.4	/	753.858	*	365 / 2
	=	11.23

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.

Digicel Group's Inventory to Revenue for the quarter that ended in Mar. 2015 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2015 )	/	Revenue (Q: Mar. 2015 )
	=	46.4	/	2794.11
	=	0.02

* 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.

Digicel Group Inventory Turnover Related Terms

Digicel Group Inventory Turnover Historical Data

* Premium members only.

The historical data trend for Digicel Group's Inventory Turnover can be seen below:

Digicel Group Inventory Turnover Chart

Digicel Group Annual Data

Trend

Mar13

Mar14

Mar15

Inventory Turnover

0.00

17.07

16.25

Digicel Group Semi-Annual Data
	Mar13	Mar14	Mar15
Inventory Turnover	0.00	17.07	16.25

Digicel Group Inventory Turnover Calculation

Digicel Group's Inventory Turnover for the fiscal year that ended in Mar. 2015 is calculated as

	Inventory Turnover (A: Mar. 2015 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Mar. 2015 )	/ (	(Total Inventories (A: Mar. 2014 )	+	Total Inventories (A: Mar. 2015 ))	/	count )
=	753.858	/ (	(43.569	+	49.231)	/	2 )
=	753.858	/	46.4
=	16.25

Digicel Group's Inventory Turnover for the quarter that ended in Mar. 2015 is calculated as

	Inventory Turnover (Q: Mar. 2015 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2015 )	/ (	(Total Inventories (Q: Mar. 2014 )	+	Total Inventories (Q: Mar. 2015 ))	/	count )
=	753.858	/ (	(43.569	+	49.231)	/	2 )
=	753.858	/	46.4
=	16.25

Frequently Asked Questions Learn more about Inventory Turnover →

What does a Inventory Turnover of 16.25 mean?

Digicel Group (DCEL) has a Inventory Turnover of 16.25 as of Mar. 2015. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Digicel Group and its competitors.

Is Digicel Group's Inventory Turnover too high?

Digicel Group's current Inventory Turnover is 16.25.

How does Digicel Group's Inventory Turnover compare to DIRV and FULO?

Digicel Group's Inventory Turnover of 16.25 can be compared against companies in the Telecommunication 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 Telecommunication Services company?

A good Inventory Turnover depends on the Telecommunication 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 Digicel Group and its competitors. Digicel Group's current Inventory Turnover is 16.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Digicel Group stock overvalued right now?

Digicel Group (DCEL) has a current Inventory Turnover of 16.25. The current Inventory Turnover is 16.25. 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 Digicel Group (DCEL), the current Inventory Turnover is 16.25 as of Mar. 2015. 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.

Digicel Group Business Description

Industry Communication Services Telecommunication Services

Comparable Companies DIRV FULO TOWTF INVT TWER DTGI MTSL WPCS KONE SLXXF TEUM VLTC CCOP GLOW CLRI TELLF NXGH OTEL SYTE FSNN

Website http://www.digicelgroup.com

Digicel Group Ltd was incorporated under the laws of Bermuda on February 5, 2007. The Company is a provider of communications services in the Caribbean and South Pacific regions. It provides a comprehensive range of mobile communications, business solutions, cable TV & broadband and other related products and services to retail, corporate (including small and medium-sized enterprises) and government customers. Its business is currently organized into nine reporting segments: Jamaica, Trinidad and Tobago, French West Indies, Haiti, El Salvador, Eastern Caribbean markets consisting of its operations in St. Lucia, Grenada and St. Vincent and the Grenadines, Guyana, Papua New Guinea and Other locations, consisting of its operations in all of its other markets. It has customer reach through 1,034 retail locations (including 667 exclusive stores) and a dealer and distributor network with approximately 183,000 recharge locations. It offers its services on both a prepaid and post-paid basis and market to retail and business customers. It caters to its retail customers through Digicel's dealer channel and to its corporate clients via a business channel. Its distribution channel is comprised of the four distinct categories: Vendor Stores, Third-Party Dealers, Prepaid Card Outlets, and Diaspora. The Company's Mobile and Cable TV & Broadband operations are subject to regulation in each of the markets in which it operates.