WABCO Holdings (FRA:WB0) Inventory Turnover : 1.64 (As of Mar. 2020)

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What is WABCO Holdings 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. WABCO Holdings's Cost of Goods Sold for the three months ended in Mar. 2020 was €483 Mil. WABCO Holdings's Average Total Inventories for the quarter that ended in Mar. 2020 was €295 Mil. WABCO Holdings's Inventory Turnover for the quarter that ended in Mar. 2020 was 1.64.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. WABCO Holdings's Days Inventory for the three months ended in Mar. 2020 was 55.79.

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. WABCO Holdings's Inventory-to-Revenue for the quarter that ended in Mar. 2020 was 0.44.

WABCO Holdings Inventory Turnover Historical Data

The historical data trend for WABCO Holdings'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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WABCO Holdings Inventory Turnover Chart

WABCO Holdings Annual Data

Trend

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Inventory Turnover

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9.67

8.99

8.00

8.47

8.04

WABCO Holdings Quarterly Data
	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20
Inventory Turnover	Get a 7-Day Free Trial															1.96	1.91	1.72	1.78	1.64

WABCO Holdings Inventory Turnover Calculation

WABCO Holdings's Inventory Turnover for the fiscal year that ended in Dec. 2019 is calculated as

	Inventory Turnover (A: Dec. 2019 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2019 )	/ (	(Total Inventories (A: Dec. 2018 )	+	Total Inventories (A: Dec. 2019 ))	/	count )
=	2186.46	/ (	(280.489	+	263.61)	/	2 )
=	2186.46	/	272.0495
=	8.04

WABCO Holdings's Inventory Turnover for the quarter that ended in Mar. 2020 is calculated as

	Inventory Turnover (Q: Mar. 2020 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2020 )	/ (	(Total Inventories (Q: Dec. 2019 )	+	Total Inventories (Q: Mar. 2020 ))	/	count )
=	483.089	/ (	(263.61	+	327.157)	/	2 )
=	483.089	/	295.3835
=	1.64

WABCO Holdings (FRA:WB0) 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.

WABCO Holdings's Days Inventory for the three months ended in Mar. 2020 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2020 )	/	Cost of Goods Sold (Q: Mar. 2020 )	*	Days in Period
	=	295.3835	/	483.089	*	365 / 4
	=	55.79

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.

WABCO Holdings's Inventory to Revenue for the quarter that ended in Mar. 2020 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2020 )	/	Revenue (Q: Mar. 2020 )
	=	295.3835	/	674.858
	=	0.44

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.

WABCO Holdings Inventory Turnover Related Terms

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WABCO Holdings (FRA:WB0) Business Description

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GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » WABCO Holdings Inc (FRA:WB0) » Definitions » Inventory Turnover

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Address

1220 Pacific Drive, Auburn Hills, MI, USA, 48326-3511

Website

https://www.wabco-auto.com

WABCO Holdings Inc is a producer of car and truck safety and efficiency technologies. The product lineup includes driver assistance systems, brake and stability control systems, brake chambers, suspensions, emission control systems, and fleet management systems. The products are developed for cars, busses, trailers, trucks, and utility vehicles. The majority of revenue is generated in Germany and the United States of America.

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