Novartis AG (XSWX:NOVN) Inventory Turnover : 0.54 (As of Sep. 2024)

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What is Novartis AG 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. Novartis AG's Cost of Goods Sold for the three months ended in Sep. 2024 was CHF2,740 Mil. Novartis AG's Average Total Inventories for the quarter that ended in Sep. 2024 was CHF5,084 Mil. Novartis AG's Inventory Turnover for the quarter that ended in Sep. 2024 was 0.54.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Novartis AG's Days Inventory for the three months ended in Sep. 2024 was 169.32.

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. Novartis AG's Inventory-to-Revenue for the quarter that ended in Sep. 2024 was 0.46.

Novartis AG Inventory Turnover Historical Data

The historical data trend for Novartis AG'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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Novartis AG Inventory Turnover Chart

Novartis AG Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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2.22

2.20

1.73

1.68

1.83

Novartis AG 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															0.45	0.51	0.54	0.55	0.54

Novartis AG Inventory Turnover Calculation

Novartis AG'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 )
=	10785.786	/ (	(6684.23	+	5113.562)	/	2 )
=	10785.786	/	5898.896
=	1.83

Novartis AG'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 )
=	2739.844	/ (	(5136.669	+	5031.521)	/	2 )
=	2739.844	/	5084.095
=	0.54

Novartis AG (XSWX:NOVN) 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.

Novartis AG'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
	=	5084.095	/	2739.844	*	365 / 4
	=	169.32

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.

Novartis AG'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 )
	=	5084.095	/	11159.318
	=	0.46

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.

Novartis AG Inventory Turnover Related Terms

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Novartis AG Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Novartis AG (XSWX:NOVN) » Definitions » Inventory Turnover

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Traded in Other Exchanges

NVSEF:USA NVS:USA NVS N:Mexico NOVNz:UK 0K9E:UK 0QLR:UK NOTA:Germany NOTA:Germany NOVNEE:Switzerland N1VS34:Brazil NVS:Argentina

Address

Lichtstrasse 35, Basel, CHE, 4056

Website

https://www.novartis.com

Novartis develops and manufactures innovative drugs. The firm's key areas of drug development include oncology, rare diseases, neuroscience, immunology, respiratory, cardio-metabolic, and established medicines. The company sells its products globally, with the United States comprising close to one third of total revenue.

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