Dell (DELL) Inventory Turnover : 8.28 (As of Jul. 2013)

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What is Dell 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. Dell's Cost of Goods Sold for the three months ended in Jul. 2013 was $11,825.00 Mil. Dell's Average Total Inventories for the quarter that ended in Jul. 2013 was $1,427.50 Mil. Dell's Inventory Turnover for the quarter that ended in Jul. 2013 was 8.28.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Dell's Days Inventory for the three months ended in Jul. 2013 was 11.02.

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. Dell's Inventory-to-Revenue for the quarter that ended in Jul. 2013 was 0.10.

Dell Inventory Turnover Historical Data

The historical data trend for Dell'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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Dell Inventory Turnover Chart

Dell Annual Data

Trend

Jan04

Jan05

Jan06

Jan07

Jan08

Jan09

Jan10

Jan11

Jan12

Jan13

Inventory Turnover

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48.99

45.51

42.60

35.68

32.13

Dell Quarterly Data
	Oct08	Jan09	Apr09	Jul09	Oct09	Jan10	Apr10	Jul10	Oct10	Jan11	Apr11	Jul11	Oct11	Jan12	Apr12	Jul12	Oct12	Jan13	Apr13	Jul13
Inventory Turnover	Get a 7-Day Free Trial															7.35	7.28	8.16	8.18	8.28

Dell Inventory Turnover Calculation

Dell's Inventory Turnover for the fiscal year that ended in Jan. 2013 is calculated as

	Inventory Turnover (A: Jan. 2013 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jan. 2013 )	/ (	(Total Inventories (A: Jan. 2012 )	+	Total Inventories (A: Jan. 2013 ))	/	count )
=	44754	/ (	(1404	+	1382)	/	2 )
=	44754	/	1393
=	32.13

Dell's Inventory Turnover for the quarter that ended in Jul. 2013 is calculated as

	Inventory Turnover (Q: Jul. 2013 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jul. 2013 )	/ (	(Total Inventories (Q: Apr. 2013 )	+	Total Inventories (Q: Jul. 2013 ))	/	count )
=	11825	/ (	(1387	+	1468)	/	2 )
=	11825	/	1427.5
=	8.28

Dell (DELISTED:DELL) 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.

Dell's Days Inventory for the three months ended in Jul. 2013 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jul. 2013 )	/	Cost of Goods Sold (Q: Jul. 2013 )	*	Days in Period
	=	1427.5	/	11825	*	365 / 4
	=	11.02

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.

Dell's Inventory to Revenue for the quarter that ended in Jul. 2013 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jul. 2013 )	/	Revenue (Q: Jul. 2013 )
	=	1427.5	/	14514
	=	0.10

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.

Dell Inventory Turnover Related Terms

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Dell (DELL) Business Description

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http://www.dell.com

Dell Inc is a Delaware Corporation, which was founded in 1984. The Company offers a range of technology solutions, including servers and networking products, storage products, services, software and peripherals, mobility products, and desktop PCs. The Company sells its products and services directly to customers through dedicated distribution channels, such as retailers, distributors, and resellers. Its business segments are Large Enterprise, Public, Small and Medium Business ('SMB'), and Consumer. Large Enterprise customers include large global and national corporate businesses. Public customers, which include educational institutions, government, health care, and law enforcement agencies, operate in their own communities. SMB segment is focused on helping small and medium-sized businesses get the most out of their technology by offering scalable products, services, and solutions. Consumer segment is focused on delivering what customers want from the total technology experience of entertainment, mobility, gaming, and design. The Company designs, develops, manufactures, markets, sells, and supports a range of products, solutions, and services. The Company also provides various customer financial services to its Commercial and Consumer customers. Its enterprise solutions include servers, networking, and storage products. The Company's services include a range of configurable IT and business services, including infrastructure technology, consulting and applications, and product-related support services. The Company offers Dell-branded printers and displays and a multitude of competitively priced third-party peripheral products such as printers, televisions, notebook accessories, mice, keyboards, networking and wireless products, digital cameras, and other products. The Company also sells a range of third-party software products, including operating systems, business and office applications, anti-virus and related security software, entertainment software, and products in various other categories. Client Products offers a variety of mobility and desktop products, including notebooks, workstations, tablets, smartphones, and desktop PCs, to its Commercial and Consumer customers. The Company offers or arranges various financing options and services for its Commercial and Consumer customers in the U.S. and Canada through Dell Financial Services ('DFS'). DFS offers a range of financial services, including originating, collecting, and servicing customer receivables related to the purchase of Dell products. DFS offers private label credit financing programs to qualified Consumer and Commercial customers and offers leases and fixed-term financing to Commercial customers. The Company sells its products and services directly to customers and through various other sales distribution channels, such as retailers, third-party solution providers, system integrators, and third-party resellers. Its customers include large global and national corpora