Export to Excel Export to OpenOffice.org Print version

United Technologies Corp. (UTX) | Analysis of Inventory

Inventory Accounting Policy

Inventories and contracts in progress are stated at the lower of cost or estimated realizable value and are primarily based on first-in, first-out (FIFO) or average cost methods; however, certain Carrier entities use the last-in, first-out (LIFO) method. If inventories that were valued using the LIFO method had been valued under the FIFO method, they would have been higher by $144 million and $137 million at December 31, 2011 and 2010, respectively. Costs accumulated against specific contracts or orders are at actual cost. Inventory in excess of requirements for contracts and current or anticipated orders have been reserved as appropriate. Manufacturing costs are allocated to current production and firm contracts.

Source: United Technologies Corp., Annual Report

Top

Inventory Disclosure

You have visited 10 password protected pages for free. Others contain data covered by .

Sign Up Now to get full access to whole website and cut out all advertisements.

United Technologies Corp., Statement of Financial Position, Inventory

USD $ in millions

Export to Excel Export to OpenOffice.org
    Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
chart Raw materials
chart Work-in-process
chart Finished goods
chart Contracts in progress
chart Inventories & contracts in progress, gross
chart Progress payments, secured by lien, on U.S. Government contracts
chart Billings on contracts in progress
chart Inventories & contracts in progress, net

Source: Based on data from United Technologies Corp. Annual Reports

Item Description The company
Raw materials Carrying amount as of the balance sheet date of unprocessed items to be consumed in the manufacturing or production process. Also includes purchased parts that will be used as components of a finished product. United Technologies Corp.'s raw materials declined from 2009 to 2010 but then increased from 2010 to 2011 exceeding 2009 level.
Work-in-process Carrying amount as of the balance sheet date of merchandise or goods which are partially completed, are generally comprised of raw materials, labor and factory overhead costs, and which require further materials, labor and overhead to be converted into finished goods, and which generally require the use of estimates to determine percentage complete and pricing. United Technologies Corp.'s work-in-process increased from 2009 to 2010 but then slightly declined from 2010 to 2011 not reaching 2009 level.
Finished goods Carrying amount as of the balance sheet date of merchandise or goods held by the company that are readily available for sale. United Technologies Corp.'s finished goods increased from 2009 to 2010 and from 2010 to 2011.
Contracts in progress Carrying amount as of the balance sheet date of inventories associated with long-term contracts or programs. United Technologies Corp.'s contracts in progress declined from 2009 to 2010 but then increased from 2010 to 2011 exceeding 2009 level.
Inventories & contracts in progress, net Carrying amount (lower of cost or market) as of the balance sheet date of inventories less all valuation and other allowances. Excludes noncurrent inventory balances (expected to remain on hand past one year or one operating cycle, if longer). United Technologies Corp.'s inventories & contracts in progress, net increased from 2009 to 2010 and from 2010 to 2011.

Top

Adjustment to Inventory: from LIFO to FIFO

You have visited 10 password protected pages for free. Others contain data covered by .

Sign Up Now to get full access to whole website and cut out all advertisements.

Adjusting LIFO Inventory to FIFO (Current) Cost

USD $ in millions

Export to Excel Export to OpenOffice.org
    Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
  Adjustment to Inventories And Contracts In Progress, Net
chart Inventories and contracts in progress, net at LIFO (as reported)
chart Add: LIFO reserve, ending balance
chart Inventories and contracts in progress, net at FIFO (adjusted)
  Adjustment to Current Assets
chart Current assets (as reported)
chart Add: LIFO reserve, ending balance
chart Current assets (adjusted)
  Adjustment to Total Assets
chart Total assets (as reported)
chart Add: LIFO reserve, ending balance
chart Total assets (adjusted)
  Adjustment to Shareowners' Equity
chart Shareowners' equity (as reported)
chart Add: LIFO reserve, ending balance
chart Shareowners' equity (adjusted)
  Adjustment to Net Income Attributable To Common Shareowners
chart Net income attributable to common shareowners (as reported)
chart Add: Increase (decrease) in LIFO reserve, ending balance
chart Net income attributable to common shareowners (adjusted)

United Technologies Corp.'s inventory value on Dec 31, 2011 would be $7,941  (in millions) if the FIFO inventory method was used instead of LIFO. United Technologies Corp.'s inventories, valued on a LIFO basis, on Dec 31, 2011 were $7,797 . United Technologies Corp.'s inventories would have been $144  higher than reported on Dec 31, 2011 if the FIFO method had been used instead.

Top

Adjusted Ratios: LIFO vs. FIFO (Summary)

You have visited 10 password protected pages for free. Others contain data covered by .

Sign Up Now to get full access to whole website and cut out all advertisements.

United Technologies Corp., adjusted ratios

Export to Excel Export to OpenOffice.org
    Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
  Current Ratio
chart Reported current ratio (LIFO)
chart Adjusted current ratio (FIFO)
  Net Profit Margin
chart Reported net profit margin (LIFO) % % % % %
chart Adjusted net profit margin (FIFO) % % % % %
  Total Asset Turnover
chart Reported total asset turnover (LIFO)
chart Adjusted total asset turnover (FIFO)
  Financial Leverage
chart Reported financial leverage (LIFO)
chart Adjusted financial leverage (FIFO)
  Return on Equity (ROE)
chart Reported ROE (LIFO) % % % % %
chart Adjusted ROE (FIFO) % % % % %
  Return on Assets (ROA)
chart Reported ROA (LIFO) % % % % %
chart Adjusted ROA (FIFO) % % % % %
Ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by current liabilities. United Technologies Corp.'s adjusted current ratio improved from 2009 to 2010 and from 2010 to 2011.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. United Technologies Corp.'s adjusted net profit margin improved from 2009 to 2010 and from 2010 to 2011.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. United Technologies Corp.'s adjusted total asset turnover deteriorated from 2009 to 2010 but then improved from 2010 to 2011 exceeding 2009 level.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 United Technologies Corp.'s adjusted financial leverage declined from 2009 to 2010 but then increased from 2010 to 2011 exceeding 2009 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders' equity. United Technologies Corp.'s adjusted ROE improved from 2009 to 2010 and from 2010 to 2011.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. United Technologies Corp.'s adjusted ROA improved from 2009 to 2010 and from 2010 to 2011.

Top

Adjusted Current Ratio

You have visited 10 password protected pages for free. Others contain data covered by .

Sign Up Now to get full access to whole website and cut out all advertisements.

Export to Excel Export to OpenOffice.org
    Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
  As Reported
chart Current assets (USD $ in millions)
chart Current liabilities (USD $ in millions)
   
chart Current ratio1
  Adjusted: from LIFO to FIFO
chart Adjusted current assets (USD $ in millions)
chart Current liabilities (USD $ in millions)
   
chart Adjusted current ratio2

2011 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= ÷ =

2 Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= ÷ =

Ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by current liabilities. United Technologies Corp.'s adjusted current ratio improved from 2009 to 2010 and from 2010 to 2011.

Top

Adjusted Net Profit Margin

You have visited 10 password protected pages for free. Others contain data covered by .

Sign Up Now to get full access to whole website and cut out all advertisements.

Export to Excel Export to OpenOffice.org
    Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
  As Reported
chart Net income attributable to common shareowners (USD $ in millions)
chart Net sales (USD $ in millions)
   
chart Net profit margin1 % % % % %
  Adjusted: from LIFO to FIFO
chart Adjusted net income attributable to common shareowners (USD $ in millions)
chart Net sales (USD $ in millions)
   
chart Adjusted net profit margin2 % % % % %

2011 Calculations

1 Net profit margin = 100 × Net income attributable to common shareowners ÷ Net sales
= 100 × ÷ = %

2 Adjusted net profit margin = 100 × Adjusted net income attributable to common shareowners ÷ Net sales
= 100 × ÷ = %

Ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. United Technologies Corp.'s adjusted net profit margin improved from 2009 to 2010 and from 2010 to 2011.

Top

Adjusted Total Asset Turnover

You have visited 10 password protected pages for free. Others contain data covered by .

Sign Up Now to get full access to whole website and cut out all advertisements.

Export to Excel Export to OpenOffice.org
    Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
  As Reported
chart Net sales (USD $ in millions)
chart Total assets (USD $ in millions)
   
chart Total asset turnover1
  Adjusted: from LIFO to FIFO
chart Net sales (USD $ in millions)
chart Adjusted total assets (USD $ in millions)
   
chart Adjusted total asset turnover2

2011 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= ÷ =

2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= ÷ =

Ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. United Technologies Corp.'s adjusted total asset turnover deteriorated from 2009 to 2010 but then improved from 2010 to 2011 exceeding 2009 level.

Top

Adjusted Financial Leverage

You have visited 10 password protected pages for free. Others contain data covered by .

Sign Up Now to get full access to whole website and cut out all advertisements.

Export to Excel Export to OpenOffice.org
    Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
  As Reported
chart Total assets (USD $ in millions)
chart Shareowners' equity (USD $ in millions)
   
chart Financial leverage1
  Adjusted: from LIFO to FIFO
chart Adjusted total assets (USD $ in millions)
chart Adjusted shareowners' equity (USD $ in millions)
   
chart Adjusted financial leverage2

2011 Calculations

1 Financial leverage = Total assets ÷ Shareowners' equity
= ÷ =

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareowners' equity
= ÷ =

Ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 United Technologies Corp.'s adjusted financial leverage declined from 2009 to 2010 but then increased from 2010 to 2011 exceeding 2009 level.

Top

Adjusted Return On Equity (ROE)

You have visited 10 password protected pages for free. Others contain data covered by .

Sign Up Now to get full access to whole website and cut out all advertisements.

Export to Excel Export to OpenOffice.org
    Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
  As Reported
chart Net income attributable to common shareowners (USD $ in millions)
chart Shareowners' equity (USD $ in millions)
   
chart ROE1 % % % % %
  Adjusted: from LIFO to FIFO
chart Adjusted net income attributable to common shareowners (USD $ in millions)
chart Adjusted shareowners' equity (USD $ in millions)
   
chart Adjusted ROE2 % % % % %

2011 Calculations

1 ROE = 100 × Net income attributable to common shareowners ÷ Shareowners' equity
= 100 × ÷ = %

2 Adjusted ROE = 100 × Adjusted net income attributable to common shareowners ÷ Adjusted shareowners' equity
= 100 × ÷ = %

Ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders' equity. United Technologies Corp.'s adjusted ROE improved from 2009 to 2010 and from 2010 to 2011.

Top

Adjusted Return On Assets (ROA)

You have visited 10 password protected pages for free. Others contain data covered by .

Sign Up Now to get full access to whole website and cut out all advertisements.

Export to Excel Export to OpenOffice.org
    Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
  As Reported
chart Net income attributable to common shareowners (USD $ in millions)
chart Total assets (USD $ in millions)
   
chart ROA1 % % % % %
  Adjusted: from LIFO to FIFO
chart Adjusted net income attributable to common shareowners (USD $ in millions)
chart Adjusted total assets (USD $ in millions)
   
chart Adjusted ROA2 % % % % %

2011 Calculations

1 ROA = 100 × Net income attributable to common shareowners ÷ Total assets
= 100 × ÷ = %

2 Adjusted ROA = 100 × Adjusted net income attributable to common shareowners ÷ Adjusted total assets
= 100 × ÷ = %

Ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. United Technologies Corp.'s adjusted ROA improved from 2009 to 2010 and from 2010 to 2011.

Top

May 24, 2012

Existing users sign in

Forgot your password?

Basic Materials

Consumer Goods

Consumer Services

Health Care

Industrials

Oil & Gas

Technology

Telecommunications