Telefonaktiebolaget L M Ericsson (Telefonaktiebolaget L M Ericsson) Days Inventory

: 81.55 (As of Dec. 2023)

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Days Inventory is also known as Days Sales of Inventory (DSI). Telefonaktiebolaget L M Ericsson's Average Total Inventories for the three months ended in Dec. 2023 was $3,770 Mil. Telefonaktiebolaget L M Ericsson's Cost of Goods Sold for the three months ended in Dec. 2023 was $4,219 Mil. Hence, Telefonaktiebolaget L M Ericsson's Days Inventory for the three months ended in Dec. 2023 was 81.55.

The historical rank and industry rank for Telefonaktiebolaget L M Ericsson's Days Inventory or its related term are showing as below:

ERIC' s Days Inventory Range Over the Past 10 Years
Min: 63.86 Med: 73.87 Max: 99.34
Current: 99.34

During the past 13 years, Telefonaktiebolaget L M Ericsson's highest Days Inventory was 99.34. The lowest was 63.86. And the median was 73.87.

ERIC's Days Inventory is ranked better than
52.43% of 2403 companies
in the Hardware industry
Industry Median: 104.02 vs ERIC: 99.34

Telefonaktiebolaget L M Ericsson's Days Inventory declined from Dec. 2022 (87.14) to Dec. 2023 (81.55).

Inventory Turnover measures how fast the company turns over its inventory within a year. Telefonaktiebolaget L M Ericsson's Inventory Turnover for the three months ended in Dec. 2023 was 1.12.

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. Telefonaktiebolaget L M Ericsson's Inventory-to-Revenue for the three months ended in Dec. 2023 was 0.54.

Telefonaktiebolaget L M Ericsson Days Inventory Historical Data

The historical data trend for Telefonaktiebolaget L M Ericsson's Days Inventory 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.

Telefonaktiebolaget L M Ericsson Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Days Inventory

78.72

72.99

91.14

99.17

91.83

Telefonaktiebolaget L M Ericsson Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Days Inventory																87.14	109.94	107.31	107.19	81.55

Competitive Comparison

For the Communication Equipment subindustry, Telefonaktiebolaget L M Ericsson's Days Inventory, along with its competitors' market caps and Days Inventory data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Telefonaktiebolaget L M Ericsson Days Inventory Distribution

For the Hardware industry and Technology sector, Telefonaktiebolaget L M Ericsson's Days Inventory distribution charts can be found below:

* The bar in red indicates where Telefonaktiebolaget L M Ericsson's Days Inventory falls into.

Telefonaktiebolaget L M Ericsson Days Inventory Calculation

Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Telefonaktiebolaget L M Ericsson's Days Inventory for the fiscal year that ended in Dec. 2023 is calculated as

	Days Inventory (A: Dec. 2023 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )	/	Cost of Goods Sold (A: Dec. 2023 )	*	Days in Period
=	( (4417.614	+	3516.71)	/	2 )	/	15768.698	*	365
=	3967.162					/	15768.698	*	365
=	91.83

Telefonaktiebolaget L M Ericsson's Days Inventory for the quarter that ended in Dec. 2023 is calculated as:

	Days Inventory (Q: Dec. 2023 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
=	( (4023.798	+	3516.71)	/	2 )	/	4218.921	*	365 / 4
=	3770.254					/	4218.921	*	365 / 4
=	81.55

Telefonaktiebolaget L M Ericsson (NAS:ERIC) Days Inventory Explanation

Days Inventory indicates the liquidity of the inventory. Generally, a lower Days Inventory is preferred as it indicates a shorter duration to clear off the inventory. An increase of the ratio may indicate the company's sales slowed. Similar ratios related to Days Inventory are:

1. Inventory Turnover measures how fast the company turns over its inventory within a year.

Telefonaktiebolaget L M Ericsson's Inventory Turnover for the three months ended in Dec. 2023 is calculated as

Inventory Turnover	=	Cost of Goods Sold	/	Average Total Inventories
	=	4218.921	/	3770.254
	=	1.12

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.

Telefonaktiebolaget L M Ericsson's Inventory to Revenue for the three months ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories	/	Revenue
	=	3770.254	/	7007.585
	=	0.54

Be Aware

A lot of business are seasonable. It makes more sense to compare Days Inventory from the same period in the previous year instead of from the previous quarter.

Telefonaktiebolaget L M Ericsson Days Inventory Related Terms

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Telefonaktiebolaget L M Ericsson (Telefonaktiebolaget L M Ericsson) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Telefonaktiebolaget L M Ericsson (NAS:ERIC) » Definitions » Days Inventory

Comparable Companies

Address

Torshamnsgatan 21, Kista, Stockholm, SWE, SE-164 83

Website

https://www.ericsson.com

Ericsson provides telecom equipment and services that are primarily used to build and facilitate mobile networks through operations in three segments: networks, cloud and software services, and enterprises. The firm's customers have historically been primarily wireless carriers, but the firm is making a push to cater more to other enterprises as well, both as they try to take advantage of 5G capabilities and on other "as-a-service" communications platforms. The company also licenses its patents to handset manufacturers so their devices are compatible with wireless networks.