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Analog Devices Inc (NAS:ADI)
Days Inventory
124.98 (As of Jan. 2015)

Analog Devices Inc's average inventory for the three months ended in Jan. 2015 was $368 Mil. Analog Devices Inc's cost of goods sold for the three months ended in Jan. 2015 was $268 Mil. Hence, Analog Devices Inc's days inventory for the three months ended in Jan. 2015 was 124.98.

Analog Devices Inc's days inventory increased from Jan. 2014 (119.37) to Jan. 2015 (124.98). It might indicate that Analog Devices Inc's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Analog Devices Inc's days sales of inventory (DSI) for the three months ended in Jan. 2015 was 43.45.

Inventory turnover measures how fast the company turns over its inventory within a year. Analog Devices Inc's inventory turnover for the three months ended in Jan. 2015 was 0.73.

Inventory to revenue ratio 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. Analog Devices Inc's inventory to revenue ratio for the three months ended in Jan. 2015 was 0.48.


Definition

Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Analog Devices Inc's Days Inventory for the fiscal year that ended in Oct. 2014 is calculated as

Days Inventory (A: Oct. 2014 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Oct. 2013 ) + Inventory (A: Oct. 2014 )) / 2 ) / COGS (A: Oct. 2014 )*Days in Period
=( (283.337 + 367.927) / 2 ) / 1034.585*365
=325.632 / 1034.585*365
=114.88

Analog Devices Inc's Days Inventory for the quarter that ended in Jan. 2015 is calculated as:

Days Inventory (Q: Jan. 2015 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Oct. 2014 ) + Inventory (Q: Jan. 2015 )) / 2 ) / COGS (Q: Jan. 2015 )*Days in Period
=( (367.927 + 367.238) / 2 ) / 268.379*365 / 4
=367.5825 / 268.379*365 / 4
=124.98

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

An increase of Days Inventory may indicate the company's sales slowed.

1. Inventory can be measured by Days Sales of Inventory (DSI).

Analog Devices Inc's Days Sales of Inventory for the three months ended in Jan. 2015 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=367.5825/771.986*365 / 4
=43.45

2. Inventory Turnover measures how fast the company turns over its inventory within a year.

Analog Devices Inc's Inventory Turnover for the three months ended in Jan. 2015 is calculated as

3. 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.

Analog Devices Inc's Inventory to Revenue for the three months ended in Jan. 2015 is calculated as

Inventory to Revenue=Average Inventory / Revenue
=367.5825 / 771.986
=0.48

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Be Aware

A lot of business are seasonable. It makes more sense to compare Days Inventory from the same period in the previous year instead of from the previous quarter.


Related Terms

Cost of Goods Sold, Inventory, Revenue, Inventory Turnover, Inventory to Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Analog Devices Inc Annual Data

Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14
DaysInventory 144.12146.71131.15115.9664.0752.64103.79115.72115.76114.88

Analog Devices Inc Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
DaysInventory 113.45122.20116.68111.30111.03119.37113.85129.46108.85124.98
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