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Ikanos Communications (FRA:I9J1) Inventory Turnover : 2.58 (As of Jun. 2015)


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What is Ikanos Communications 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. Ikanos Communications's Cost of Goods Sold for the three months ended in Jun. 2015 was €4.81 Mil. Ikanos Communications's Average Total Inventories for the quarter that ended in Jun. 2015 was €1.87 Mil. Ikanos Communications's Inventory Turnover for the quarter that ended in Jun. 2015 was 2.58.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Ikanos Communications's Days Inventory for the three months ended in Jun. 2015 was 35.42.

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. Ikanos Communications's Inventory-to-Revenue for the quarter that ended in Jun. 2015 was 0.19.


Ikanos Communications Inventory Turnover Historical Data

The historical data trend for Ikanos Communications'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.

Ikanos Communications Inventory Turnover Chart

Ikanos Communications Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.19 4.99 7.37 7.45 13.40

Ikanos Communications Quarterly Data
Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15
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 3.35 4.24 4.19 2.70 2.58

Ikanos Communications Inventory Turnover Calculation

Ikanos Communications's Inventory Turnover for the fiscal year that ended in Dec. 2014 is calculated as

Inventory Turnover (A: Dec. 2014 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2014 ) / ((Total Inventories (A: Dec. 2013 ) + Total Inventories (A: Dec. 2014 )) / count )
=20.538 / ((1.472 + 1.593) / 2 )
=20.538 / 1.5325
=13.40

Ikanos Communications's Inventory Turnover for the quarter that ended in Jun. 2015 is calculated as

Inventory Turnover (Q: Jun. 2015 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Jun. 2015 ) / ((Total Inventories (Q: Mar. 2015 ) + Total Inventories (Q: Jun. 2015 )) / count )
=4.805 / ((1.956 + 1.774) / 2 )
=4.805 / 1.865
=2.58

* 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.


Ikanos Communications  (FRA:I9J1) 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.

Ikanos Communications's Days Inventory for the three months ended in Jun. 2015 is calculated as:

Days Inventory =Average Total Inventories (Q: Jun. 2015 )/Cost of Goods Sold (Q: Jun. 2015 )*Days in Period
=1.865/4.805*365 / 4
=35.42

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.

Ikanos Communications's Inventory to Revenue for the quarter that ended in Jun. 2015 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Jun. 2015 ) / Revenue (Q: Jun. 2015 )
=1.865 / 9.862
=0.19

* 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.


Ikanos Communications Inventory Turnover Related Terms

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Ikanos Communications (FRA:I9J1) Business Description

Traded in Other Exchanges
N/A
Address
Ikanos Communications Inc was incorporated in the State of California in April 1999 and reincorporated in the State of Delaware in September 2005. The Company is a provider of advanced broadband semiconductor products and software for delivering high speed broadband solutions to the digital home. The Company's broadband multi-mode and digital subscriber line processors and other semiconductor offerings power carrier infrastructure and customer premise equipment for network equipment manufacturers who, in turn, serve telecommunications service providers. The Company has developed programmable, scalable chip architectures, which form the foundation for deploying and delivering multi-play services. This communications processor architecture with wire-speed packet processing capabilities enables high-performance end user devices capable of distributing advanced services in the home. These products support telecommunications services providers' multi-play deployment plans to the digital home while keeping their capital and operating expenditures low and have been deployed by service providers in Asia, Europe, and North and South America. The Company outsources all of its semiconductor fabrication, assembly, and test functions, which allows focusing on the design, development, sales, and marketing of its products and reduces the level of its capital investment. It offers multiple product lines that are designed to address different segments of the communications processor and the high-speed broadband DSL markets. The Company currently competes or expects to compete with, among others, Alcatel-Lucent, Broadcom Corporation, Cavium, Inc., Cortina Systems, Inc., Lantiq Deutschland GmbH, Marvell Technology Group Ltd., M/A-COM Technology Solutions Holdings, Inc., PMC-Sierra, Inc., Metanoia Communication, QUALCOMM Incorporated, Realtek Semiconductor Corp., and MediaTek Inc. As of December 29, 2013, the Company had over 285 patents issued in the United States and more than 35 companion patents issued in foreign jurisdictions.

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