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A.O. Smith Corp (NYSE:AOS)
Days Inventory
55.71 (As of Jun. 2016)

A.O. Smith Corp's average inventory for the three months ended in Jun. 2016 was $234 Mil. A.O. Smith Corp's cost of goods sold for the three months ended in Jun. 2016 was $383 Mil. Hence, A.O. Smith Corp's days inventory for the three months ended in Jun. 2016 was 55.71.

AOS' s Days Inventory Range Over the Past 10 Years
Min: 45.01   Max: 73.09
Current: 56.44

45.01
73.09

During the past 13 years, A.O. Smith Corp's highest Days Inventory was 73.09. The lowest was 45.01. And the median was 50.27.

AOS's Days Inventory is ranked higher than
74% of the 1719 Companies
in the Global Diversified Industrials industry.

( Industry Median: 97.90 vs. AOS: 56.44 )

A.O. Smith Corp's days inventory increased from Jun. 2015 (52.75) to Jun. 2016 (55.71). It might indicate that A.O. Smith Corp's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). A.O. Smith Corp's days sales of inventory (DSI) for the three months ended in Jun. 2016 was 32.01.

Inventory turnover measures how fast the company turns over its inventory within a year. A.O. Smith Corp's inventory turnover for the three months ended in Jun. 2016 was 1.64.

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. A.O. Smith Corp's inventory to revenue ratio for the three months ended in Jun. 2016 was 0.35.


Definition

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

A.O. Smith Corp'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
=( (208.3 + 222.9) / 2 ) / 1526.7*365
=215.6 / 1526.7*365
=51.55

A.O. Smith Corp's Days Inventory for the quarter that ended in Jun. 2016 is calculated as:

Days Inventory (Q: Jun. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Mar. 2016 ) + Inventory (Q: Jun. 2016 )) / 2 ) / COGS (Q: Jun. 2016 )*Days in Period
=( (230.2 + 237.8) / 2 ) / 383.3*365 / 4
=234 / 383.3*365 / 4
=55.71

* 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).

A.O. Smith Corp's Days Sales of Inventory for the three months ended in Jun. 2016 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=234/667*365 / 4
=32.01

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

A.O. Smith Corp's Inventory Turnover for the three months ended in Jun. 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.

A.O. Smith Corp's Inventory to Revenue for the three months ended in Jun. 2016 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.

A.O. Smith Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DaysInventory 56.2056.7354.9173.0945.0148.0247.0447.1948.9851.55

A.O. Smith Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DaysInventory 50.0448.6352.9749.3150.0652.7558.5155.6355.2555.71
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