Koninklijke Philips NV (XAMS:PHIA) Inventory Turnover : 0.93 (As of Dec. 2023)

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What is Koninklijke Philips NV 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. Koninklijke Philips NV's Cost of Goods Sold for the three months ended in Dec. 2023 was €3,264 Mil. Koninklijke Philips NV's Average Total Inventories for the quarter that ended in Dec. 2023 was €3,491 Mil. Koninklijke Philips NV's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.93.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Koninklijke Philips NV's Days Inventory for the three months ended in Dec. 2023 was 97.60.

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. Koninklijke Philips NV's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.69.

Koninklijke Philips NV Inventory Turnover Historical Data

The historical data trend for Koninklijke Philips NV'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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Koninklijke Philips NV Inventory Turnover Chart

Koninklijke Philips NV Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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3.40

3.29

3.10

2.84

Koninklijke Philips NV Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															0.79	0.60	0.61	0.62	0.93

Koninklijke Philips NV Inventory Turnover Calculation

Koninklijke Philips NV'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 )
=	10721	/ (	(4049	+	3491)	/	2 )
=	10721	/	3770
=	2.84

Koninklijke Philips NV's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

	Inventory Turnover (Q: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2023 )	/ (	(Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	3264	/ (	(0	+	3491)	/	1 )
=	3264	/	3491
=	0.93

Koninklijke Philips NV (XAMS:PHIA) 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.

Koninklijke Philips NV's Days Inventory for the three months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	3491	/	3264	*	365 / 4
	=	97.60

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.

Koninklijke Philips NV's Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	3491	/	5062
	=	0.69

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.

Koninklijke Philips NV Inventory Turnover Related Terms

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Koninklijke Philips NV (XAMS:PHIA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Koninklijke Philips NV (XAMS:PHIA) » Definitions » Inventory Turnover

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Traded in Other Exchanges

RYLPF:USA PHG:USA PHIA:Italy 0A2M:UK PHIAa:UK 0LNG:UK PHI1:Germany PHGN34:Brazil PHIA:Austria

Address

Philips Center, Amstelplein 2, Amsterdam, NLD, 1096 BC

Website

https://www.philips.com

Philips is a diversified global healthcare company operating in three segments: diagnosis and treatment, connected care, and personal health. Around 50% of the company's revenue comes from the diagnosis and treatment segment, which features imaging systems, ultrasound equipment, image-guided therapy solutions and healthcare informatics. The connected care segment (around 30% of revenue) encompasses monitoring and analytics systems for hospitals and sleep and respiratory care devices, whereas the personal health business (remainder of revenue) includes electric toothbrushes and men's grooming and personal-care products.

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