Analysis of Inventory
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- Cash Flow Statement
- Analysis of Profitability Ratios
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Enterprise Value (EV)
- Capital Asset Pricing Model (CAPM)
- Current Ratio since 2005
- Price to Book Value (P/BV) since 2005
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Inventory Disclosure
EMC Corp., balance sheet: inventory
US$ in millions
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Work-in-process | |||||||||||
| Finished goods | |||||||||||
| Inventories |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
The analysis of the financial data over the five-year period reveals several notable trends in the inventory composition and levels.
- Work-in-Process Inventory
- There is a generally upward trend in work-in-process inventory from 2011 to 2013, increasing from 492 million US dollars to 696 million. However, from 2014 onwards, a decline is observed, with the value decreasing to 592 million by 2015. This suggests that the company may have optimized or reduced ongoing production stocks in the later years.
- Finished Goods Inventory
- Finished goods inventory shows a consistent increase over the entire five-year period. Starting at 518 million in 2011, it rose steadily every year to reach 653 million in 2015. This persistent growth could indicate either higher inventory accumulation or increased production capacity leading to more finished goods stock.
- Total Inventories
- Overall inventories exhibit a growth pattern similar to that of the individual components initially. The total increased from 1010 million in 2011 to a peak of 1334 million in 2013. After 2013, there is a slight decline, with inventories falling to 1245 million by 2015. This slight reduction is primarily driven by the decrease in work-in-process inventory, which offsets the steady increase in finished goods.
In summary, the data portrays an inventory structure where finished goods inventory consistently grows, suggesting either building stock levels or expanded production output, while work-in-process inventory peaks mid-period and then tapers off, indicating possible improvements in production efficiency or changes in production scheduling. The total inventory trend appears to stabilize somewhat after reaching a high in 2013, reflecting a balancing of inventory management strategies.