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Polycom (STU:PLY) Inventory Turnover : 1.29 (As of Jun. 2016)


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What is Polycom 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. Polycom's Cost of Goods Sold for the three months ended in Jun. 2016 was €113 Mil. Polycom's Average Total Inventories for the quarter that ended in Jun. 2016 was €87 Mil. Polycom's Inventory Turnover for the quarter that ended in Jun. 2016 was 1.29.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Polycom's Days Inventory for the three months ended in Jun. 2016 was 70.66.

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. Polycom's Inventory-to-Revenue for the quarter that ended in Jun. 2016 was 0.34.

Polycom Inventory Turnover Historical Data

The historical data trend for Polycom'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.

Polycom Inventory Turnover Chart

Polycom 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 5.26 5.90 5.54 5.80 5.94

Polycom 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 1.32 1.24 1.46 1.33 1.29

Polycom Inventory Turnover Calculation

Polycom'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 )
=485.138 / ((81.366 + 82.062) / 2 )
=485.138 / 81.714
=5.94

Polycom'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 )
=112.591 / ((88.256 + 86.106) / 2 )
=112.591 / 87.181
=1.29

* 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.

Polycom  (STU:PLY) 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.

Polycom'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
=87.181/112.591*365 / 4
=70.66

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.

Polycom'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 )
=87.181 / 256.123
=0.34

* 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.

Polycom Inventory Turnover Related Terms

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Polycom (STU:PLY) Business Description

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Address
Website
http://www.polycom.com
Polycom Inc was incorporated in December 1990 in Delaware. The Company provides an open, standards-based unified communications and collaboration (UC&C) solutions for voice, video and content collaboration solutions. Its solutions are powered by the Polycom RealPresence Platform, comprehensive software infrastructure and rich application programming interfaces (APIs) that interoperate with a set of communication, business, mobile, and cloud applications and devices to deliver secure face-to-face video collaboration across different environments. The Company is engaged in helping organizations achieve new levels of teamwork, efficiency and productivity by unleashing the power of human collaboration. The Company sells its solutions through a high-touch sales model that leverages its network of channel partners, including distributors, value-added resellers, system integrators; communications services providers, and retailers. The Company serves in three geographical segments; Americas, EMEA and APAC. Its products and solutions are; UC Group Systems, which includes immersive telepresence, group video and group voice systems. UC Platform, which includes collaboration servers, virtualization management "distributed media optimization", resource management, recording and streaming, open API's and remote access technologies that constitute the RealPresence Platform, and UC Personal Devices, which includes desktop video devices and desktop voice products. It competes in the UC&C market with products and solutions that enable voice, video and content collaboration on-premises, across intranets, extranets, mobile devices, and the Internet via its customer premises-based RealPresence Platform, web-based social-collaboration business platforms, and video collaboration-as-a-service offerings delivered from the cloud. These competitors include but are not limited to Cisco Systems, Inc., Acano, Avaya Inc., Blue Jeans Networks, Inc., ClearOne Communications, Inc., Huawei Technologies Co., Ltd., Logitech International S.A./LifeSize, PexIP, Snom Technology Ag, Vidyo, Inc., Yamaha Corporation/Revolabs, Inc., Yealink, ZTE Corporation and others. Its products and services are subject to various federal, state, local, and foreign laws and regulations.

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