What do Apple, Amazon, McDonald's, Dell, P&G, Coca-Cola, Pepsi, Samsung, HP and Nike, among others, all have in common?
Simple: They are all among the top 25 companies in the world when it comes to overturning their inventories - or how fast they sell everything that they make! As AppleInsider reports:
" ..... Apple has an inventory turn metric of 74, which means that the iPad maker turns over its entire inventory once every five days, a staggering number for a consumer electronics company."
Dang-tooting that's a staggering number, if not an absolute mind-blowing one. Mind you, MacDonald's has a higher inventory turn metric of 142.4, but you have to remember that there is a big difference between a hamburger, milk shake, fries, etc., than a smartphone, tablet, desktop, mpg player, etc., and especially when you compare the cost of each.
The only tech companies, out of the top 25, plus their overall inventory ranks, are listed as follows:
1 - Apple
4 - Dell
7 - Intel
8 - Cisco
13 - Samsung
19 - RIM
24 - HP
Wow, in conclusion, I find it rather hard to believe that Apple, with its high-priced gizmos, would or could actually beat the likes of McDonald's, Coca-Cola, Pepsi or mighty Walmart when it comes to completely overturning their inventory! People need to eat, drink and buy clothes and what have you, but Apple's gear, as nice as they are, are not exactly what I would call essential to life-and-limb such as food, shelter, etc. are, and especially considering the economic turmoil the world is going through these days just makes Apple's high inventory turnover all the more impressive indeed.
And that's my 2 cents 4 this rather pleasant Friday, May 31, 2012
Chart via Appleinsider; source: Gartner