Baker Hughes (XSWX:BHI) Inventory Turnover : 1.01 (As of Mar. 2017)

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What is Baker Hughes 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. Baker Hughes's Cost of Goods Sold for the three months ended in Mar. 2017 was CHF1,891 Mil. Baker Hughes's Average Total Inventories for the quarter that ended in Mar. 2017 was CHF1,877 Mil. Baker Hughes's Inventory Turnover for the quarter that ended in Mar. 2017 was 1.01.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Baker Hughes's Days Inventory for the three months ended in Mar. 2017 was 90.58.

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. Baker Hughes's Inventory-to-Revenue for the quarter that ended in Mar. 2017 was 0.83.

Baker Hughes Inventory Turnover Historical Data

The historical data trend for Baker Hughes'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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Baker Hughes Inventory Turnover Chart

Baker Hughes Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Inventory Turnover

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4.93

4.77

5.17

4.17

4.28

Baker Hughes Quarterly Data
	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17
Inventory Turnover	Get a 7-Day Free Trial															0.92	1.29	1.04	1.16	1.01

Baker Hughes Inventory Turnover Calculation

Baker Hughes's Inventory Turnover for the fiscal year that ended in Dec. 2016 is calculated as

	Inventory Turnover (A: Dec. 2016 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2016 )	/ (	(Total Inventories (A: Dec. 2015 )	+	Total Inventories (A: Dec. 2016 ))	/	count )
=	10166.476	/ (	(2902.707	+	1844.095)	/	2 )
=	10166.476	/	2373.401
=	4.28

Baker Hughes's Inventory Turnover for the quarter that ended in Mar. 2017 is calculated as

	Inventory Turnover (Q: Mar. 2017 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2017 )	/ (	(Total Inventories (Q: Dec. 2016 )	+	Total Inventories (Q: Mar. 2017 ))	/	count )
=	1890.832	/ (	(1844.095	+	1909.861)	/	2 )
=	1890.832	/	1876.978
=	1.01

Baker Hughes (XSWX:BHI) 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.

Baker Hughes's Days Inventory for the three months ended in Mar. 2017 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2017 )	/	Cost of Goods Sold (Q: Mar. 2017 )	*	Days in Period
	=	1876.978	/	1890.832	*	365 / 4
	=	90.58

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.

Baker Hughes's Inventory to Revenue for the quarter that ended in Mar. 2017 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2017 )	/	Revenue (Q: Mar. 2017 )
	=	1876.978	/	2265.393
	=	0.83

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.

Baker Hughes Inventory Turnover Related Terms

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Baker Hughes (XSWX:BHI) Business Description

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http://www.bakerhughes.com

Baker Hughes is one of the world's largest integrated oil services providers. Its largest end market is North America, and thus its fortunes are strongly leveraged to U.S. shale activity. By the end of 2017, the firm is set to combine with General Electric's oil and gas division, which is more leveraged to offshore developments, as well as nonupstream energy markets such as liquefied natural gas and refining.

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