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Allergan PLC (NYSE:AGN)
Days Inventory
565.54 (As of Sep. 2016)

Allergan PLC's average inventory for the six months ended in Sep. 2016 was $716 Mil. Allergan PLC's cost of goods sold for the six months ended in Sep. 2016 was $462 Mil. Hence, Allergan PLC's days inventory for the six months ended in Sep. 2016 was 282.77.

AGN' s Days Inventory Range Over the Past 10 Years
Min: 66.09   Max: 369.82
Current: 75.03

66.09
369.82

During the past 13 years, Allergan PLC's highest Days Inventory was 369.82. The lowest was 66.09. And the median was 121.54.

AGN's Days Inventory is ranked higher than
72% of the 686 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 114.28 vs. AGN: 75.03 )

Allergan PLC's days inventory increased from Mar. 2016 (400.09) to Sep. 2016 (565.54). It might indicate that Allergan PLC's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Allergan PLC's days sales of inventory (DSI) for the six months ended in Sep. 2016 was 36.08.

Inventory turnover measures how fast the company turns over its inventory within a year. Allergan PLC's inventory turnover for the six months ended in Sep. 2016 was 0.65.

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. Allergan PLC's inventory to revenue ratio for the six months ended in Sep. 2016 was 0.20.


Definition

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

Allergan PLC's Days Inventory for the fiscal year that ended in Dec. 2015 is calculated as

Days Inventory (A: Dec. 2015 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Dec. 2014 ) + Inventory (A: Dec. 2015 )) / 2 ) / COGS (A: Dec. 2015 )*Days in Period
=( (984.6 + 757.5) / 2 ) / 4810.4*365
=871.05 / 4810.4*365
=66.09

Allergan PLC's Days Inventory for the quarter that ended in Sep. 2016 is calculated as:

Days Inventory (Q: Sep. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Jun. 2016 ) + Inventory (Q: Sep. 2016 )) / 2 ) / COGS (Q: Sep. 2016 )*Days in Period
=( (726.8 + 705.5) / 2 ) / 462.2*365 / 2
=716.15 / 462.2*365 / 2
=282.77

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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).

Allergan PLC's Days Sales of Inventory for the six months ended in Sep. 2016 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=716.15/3622.2*365 / 2
=36.08

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

Allergan PLC's Inventory Turnover for the six months ended in Sep. 2016 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.

Allergan PLC's Inventory to Revenue for the six months ended in Sep. 2016 is calculated as

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Allergan PLC Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DaysInventory 117.67122.23117.03133.19120.84108.11130.97369.82146.4266.09

Allergan PLC Semi-Annual Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DaysInventory 472.91657.22609.10735.241,175.391,046.08140.14400.09722.97565.54
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