Switch to:
Applied Materials Inc (NAS:AMAT)
Days Inventory
111.19 (As of Jul. 2014)

Applied Materials Inc's average inventory for the three months ended in Jul. 2014 was $1,556 Mil. Applied Materials Inc's cost of goods sold for the three months ended in Jul. 2014 was $1,273 Mil. Hence, Applied Materials Inc's days inventory for the three months ended in Jul. 2014 was 111.19.

Applied Materials Inc's days inventory increased from Jul. 2013 (104.16) to Jul. 2014 (111.19). It might indicate that Applied Materials Inc's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Applied Materials Inc's days sales of inventory (DSI) for the three months ended in Jul. 2014 was 62.49.

Inventory turnover measures how fast the company turns over its inventory within a year. Applied Materials Inc's inventory turnover for the three months ended in Jul. 2014 was 0.82.

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. Applied Materials Inc's inventory to revenue ratio for the three months ended in Jul. 2014 was 0.69.


Definition

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

Applied Materials Inc's Days Inventory for the fiscal year that ended in Oct. 2013 is calculated as

Days Inventory
=( (Inventory (A: Oct. 2012 )+Inventory (A: Oct. 2013 ))/ 2 )/Cost of Goods Sold*Days in Period
=( (1272+1413)/ 2 )/4518*365
=1342.5/4518*365
=108.46

Applied Materials Inc's Days Inventory for the quarter that ended in Jul. 2014 is calculated as:

Days Inventory
=( (Inventory (Q: Apr. 2014 )+Inventory (Q: Jul. 2014 ))/ 2 )/Cost of Goods Sold*Days in Period
=( (1564+1547)/ 2 )/1273*91
=1555.5/1273*91
=111.19

* 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).

Applied Materials Inc's Days Sales of Inventory for the three months ended in Jul. 2014 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=1555.5/2265*91
=62.49

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

Applied Materials Inc's Inventory Turnover for the three months ended in Jul. 2014 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.

Applied Materials Inc's Inventory to Revenue for the three months ended in Jul. 2014 is calculated as

* 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.

Applied Materials Inc Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
DaysInventory 88.46101.5591.3794.69128.52184.1199.3296.29100.36108.46

Applied Materials Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
DaysInventory 100.1095.77113.94117.08101.39104.16105.68103.19104.23111.19
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK