Varian Medical Systems (Varian Medical Systems) Inventory Turnover : 0.77 (As of Dec. 2020)

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What is Varian Medical Systems 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. Varian Medical Systems's Cost of Goods Sold for the three months ended in Dec. 2020 was $420 Mil. Varian Medical Systems's Average Total Inventories for the quarter that ended in Dec. 2020 was $544 Mil. Varian Medical Systems's Inventory Turnover for the quarter that ended in Dec. 2020 was 0.77.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Varian Medical Systems's Days Inventory for the three months ended in Dec. 2020 was 118.25.

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. Varian Medical Systems's Inventory-to-Revenue for the quarter that ended in Dec. 2020 was 0.70.

Varian Medical Systems Inventory Turnover Historical Data

The historical data trend for Varian Medical Systems'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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Varian Medical Systems Inventory Turnover Chart

Varian Medical Systems Annual Data

Trend

Sep11

Sep12

Sep13

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Inventory Turnover

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2.82

3.50

3.85

3.75

3.35

Varian Medical Systems Quarterly Data
	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20
Inventory Turnover	Get a 7-Day Free Trial															0.80	0.76	0.66	0.85	0.77

Varian Medical Systems Inventory Turnover Calculation

Varian Medical Systems's Inventory Turnover for the fiscal year that ended in Sep. 2020 is calculated as

	Inventory Turnover (A: Sep. 2020 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Sep. 2020 )	/ (	(Total Inventories (A: Sep. 2019 )	+	Total Inventories (A: Sep. 2020 ))	/	count )
=	1791	/ (	(551.5	+	516.3)	/	2 )
=	1791	/	533.9
=	3.35

Varian Medical Systems's Inventory Turnover for the quarter that ended in Dec. 2020 is calculated as

	Inventory Turnover (Q: Dec. 2020 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2020 )	/ (	(Total Inventories (Q: Sep. 2020 )	+	Total Inventories (Q: Dec. 2020 ))	/	count )
=	419.8	/ (	(516.3	+	571.7)	/	2 )
=	419.8	/	544
=	0.77

Varian Medical Systems (NYSE:VAR) 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.

Varian Medical Systems's Days Inventory for the three months ended in Dec. 2020 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2020 )	/	Cost of Goods Sold (Q: Dec. 2020 )	*	Days in Period
	=	544	/	419.8	*	365 / 4
	=	118.25

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.

Varian Medical Systems's Inventory to Revenue for the quarter that ended in Dec. 2020 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2020 )	/	Revenue (Q: Dec. 2020 )
	=	544	/	778.8
	=	0.70

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.

Varian Medical Systems Inventory Turnover Related Terms

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Varian Medical Systems (Varian Medical Systems) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Varian Medical Systems Inc (NYSE:VAR) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

N/A

Address

3100 Hansen Way, Palo Alto, CA, USA, 94304-1038

Website

https://www.varian.com

Varian Medical Systems designs, manufactures, and sells radiation technology for use in two business segments: oncology systems and proton therapy. The Americas account for the largest portion of revenue (47%), followed by Europe, the Middle East, and Africa (33%) and Asia-Pacific (19%).

Executives

Jesse Michael Bruff	officer: SVP Finance, CFO	3100 HANSEN WAY, PALO ALTO CA 94304
Magnus Momsen	officer: SVP, CAO, Corporate Controller	VARIAN MEDICAL SYSTEMS INC. 3100 HANSEN WAY MAIL STOP E327 PALO ALTO CA 94304
Dow R Wilson	director, officer: President and CEO	VARIAN MEDICAL SYSTEMS INC, 3100 HANSEN WAY MAIL STOP E327, PALO ALTO CA 94304
Kolleen T Kennedy	officer: Pres. Proton Solutions, CGO	VARIAN MEDICAL SYSTEMS INC, 3100 HANSEN WAY MAIL STOP E327, PALO ALTO CA 94304
Christopher A. Toth	officer: SVP and Pres. Oncology Systems	1252 COOLIDGE AVE., SAN JOSE CA 95125
Michael Damon Hutchinson	officer: SVP,Chief Legal Officer, Secy	2825 AIRVIEW BLVD, KALAMAZOO MI 49002
Jean Luc Butel	director	ONE BAXTER PARKWAY, DEERFIELD IL 60015
John W Kuo	officer: SVP, Gen Counsel and Secretary	VARIAN MEDICAL SYSTEMS INC, 3100 HANSEN WAY MAIL STOP E327, PALO ALTO CA 94304
Judy Bruner	director	C/O SANDISK CORPORATION, 601 MCCARTHY BLVD., MILPITAS CA 95035
Beau Michelle Le	director	800 N. MICHIGAN AVENUE #3703 CHICAGO IL 60611
Anat Ashkenazi	director	LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285
Jeffrey R. Balser	director	3657 RICHLAND AVE., NASHVILLE TN 37205
Regina E Dugan	director	VARIAN MEDICAL SYSTEMS INC, 3100 HANSEN WAY MAIL STOP E327, PALO ALTO CA 94304
David J Illingworth	director	3100 HANSEN WAY PALO ALTO CA 94304
R Andrew Eckert	director	THREE RAVINIA DRIVE, ATLANTA GA 30346