Vertiv Holdings Co (FRA:49V) Inventory Turnover : 1.10 (As of Sep. 2024)

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What is Vertiv Holdings Co 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. Vertiv Holdings Co's Cost of Goods Sold for the three months ended in Sep. 2024 was €1,187 Mil. Vertiv Holdings Co's Average Total Inventories for the quarter that ended in Sep. 2024 was €1,078 Mil. Vertiv Holdings Co's Inventory Turnover for the quarter that ended in Sep. 2024 was 1.10.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Vertiv Holdings Co's Days Inventory for the three months ended in Sep. 2024 was 82.90.

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. Vertiv Holdings Co's Inventory-to-Revenue for the quarter that ended in Sep. 2024 was 0.58.

Vertiv Holdings Co Inventory Turnover Historical Data

The historical data trend for Vertiv Holdings Co'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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Vertiv Holdings Co Inventory Turnover Chart

Vertiv Holdings Co Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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6.49

6.74

5.82

5.16

Vertiv Holdings Co 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															1.22	1.29	1.15	1.16	1.10

Vertiv Holdings Co Inventory Turnover Calculation

Vertiv Holdings Co'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 )
=	4092.296	/ (	(775.968	+	810.903)	/	2 )
=	4092.296	/	793.4355
=	5.16

Vertiv Holdings Co'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 )
=	1186.708	/ (	(1025.337	+	1130.935)	/	2 )
=	1186.708	/	1078.136
=	1.10

Vertiv Holdings Co (FRA:49V) 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.

Vertiv Holdings Co'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
	=	1078.136	/	1186.708	*	365 / 4
	=	82.90

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.

Vertiv Holdings Co'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 )
	=	1078.136	/	1868.224
	=	0.58

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.

Vertiv Holdings Co Inventory Turnover Related Terms

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Vertiv Holdings Co Business Description

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VRT:USA

Address

505 North, Cleveland Avenue, Westerville, OH, USA, 43082

Website

https://www.vertiv.com

Vertiv Holdings Co brings together hardware, software, analytics and ongoing services to ensure its customers vital applications run continuously, perform optimally and grow with their business needs. The company solves the important challenges faced by data centers, communication networks and commercial and industrial facilities with a portfolio of power, cooling and IT infrastructure solutions and services that extends from the cloud to the edge of the network. Its services include critical power, thermal management, racks and enclosures, monitoring and management, and other services. Its three business segments include the Americas, Asia Pacific; and Europe, Middle East & Africa.

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