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EMC (FRA:EMP) Inventory Turnover : 1.83 (As of Jun. 2016)


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What is EMC 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. EMC's Cost of Goods Sold for the three months ended in Jun. 2016 was €2,030 Mil. EMC's Average Total Inventories for the quarter that ended in Jun. 2016 was €1,107 Mil. EMC's Inventory Turnover for the quarter that ended in Jun. 2016 was 1.83.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. EMC's Days Inventory for the three months ended in Jun. 2016 was 49.75.

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. EMC's Inventory-to-Revenue for the quarter that ended in Jun. 2016 was 0.21.


EMC Inventory Turnover Historical Data

The historical data trend for EMC'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.

EMC Inventory Turnover Chart

EMC Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.42 7.31 6.76 7.42 8.19

EMC 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 1.88 1.94 2.18 1.77 1.83

EMC Inventory Turnover Calculation

EMC's Inventory Turnover for the fiscal year that ended in Dec. 2015 is calculated as

Inventory Turnover (A: Dec. 2015 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2015 ) / ((Total Inventories (A: Dec. 2014 ) + Total Inventories (A: Dec. 2015 )) / count )
=8916.534 / ((1034.836 + 1142.91) / 2 )
=8916.534 / 1088.873
=8.19

EMC'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 )
=2030.09 / ((1107.234 + 1106.27) / 2 )
=2030.09 / 1106.752
=1.83

* 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.


EMC  (FRA:EMP) 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.

EMC'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
=1106.752/2030.09*365 / 4
=49.75

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.

EMC'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 )
=1106.752 / 5355.13
=0.21

* 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.


EMC Inventory Turnover Related Terms

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EMC (FRA:EMP) Business Description

Traded in Other Exchanges
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Address
EMC Corp is a Massachusetts corporation, incorporated in 1979. The Company together with its subsidiaries supports the businesses and service providers to transform information technology (IT) operations to an as a service model (ITaaS). The Company operates in three segments: EMC Information Infrastructure, Pivotal and VMware Virtual Infrastructure. The Company's information infrastructure provides a foundation for organizations to store, manage, protect, analyze and secure ever-increasing quantities of information, while at the same time improving business agility, lowering cost and increasing competitive advantage. VMware Virtual Infrastructure provides virtualization infrastructure solutions. Pivotal provides application and data infrastructure software, agile development services and data science consulting. The Company offers a comprehensive portfolio of enterprise storage systems and software - including high-end EMC VMAX and mid-tier EMC VNX unified storage and a portfolio of backup products that support enterprise application workloads. The Company's two additional storage families, EMC Isilon and EMC Atmos, are specifically designed to handle vast quantities of unstructured data. EMC supports a broad range of customers, including service providers, around the world - in every industry, in both public and private sectors, and of sizes ranging from the Fortune 500 to small business and individual consumers. The Company markets its products through direct sales and through multiple distribution channels. It has a direct sales presence throughout North America, Latin America, Europe, the Middle East, South Africa and the Asia Pacific region. The Company also has agreements in place with many partners, including value-added resellers and distributors, cloud service providers, systems integrators, outsourcers, Independent Software Vendors ("ISVs"), and Original Equipment Manufacturers ("OEMs"). The Company competes with many companies in the markets it serve, including companies that offer IT products and services and others that offer specific information storage, protection, security, management and intelligence, data analytics or virtualization products or services.

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