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GuruFocus has detected 3 Warning Signs with Brown-Forman Corp $BF.B.
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Brown-Forman Corp (NYSE:BF.B)
Days Inventory
423.37 (As of Jan. 2017)

Brown-Forman Corp's average inventory for the three months ended in Jan. 2017 was $1,262 Mil. Brown-Forman Corp's cost of goods sold for the three months ended in Jan. 2017 was $272 Mil. Hence, Brown-Forman Corp's days inventory for the three months ended in Jan. 2017 was 423.37.

BF.B' s Days Inventory Range Over the Past 10 Years
Min: 267.2   Max: 440.02
Current: 440.02

267.2
440.02

During the past 13 years, Brown-Forman Corp's highest Days Inventory was 440.02. The lowest was 267.20. And the median was 291.19.

BF.B's Days Inventory is ranked lower than
88% of the 185 Companies
in the Global Beverages - Wineries & Distilleries industry.

( Industry Median: 95.13 vs. BF.B: 440.02 )

Brown-Forman Corp's days inventory increased from Jan. 2016 (376.86) to Jan. 2017 (423.37). It might indicate that Brown-Forman Corp's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Brown-Forman Corp's days sales of inventory (DSI) for the three months ended in Jan. 2017 was 142.52.

Inventory turnover measures how fast the company turns over its inventory within a year. Brown-Forman Corp's inventory turnover for the three months ended in Jan. 2017 was 0.22.

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. Brown-Forman Corp's inventory to revenue ratio for the three months ended in Jan. 2017 was 1.56.


Definition

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

Brown-Forman Corp's Days Inventory for the fiscal year that ended in Apr. 2016 is calculated as

Days Inventory (A: Apr. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Apr. 2015 ) + Inventory (A: Apr. 2016 )) / 2 ) / COGS (A: Apr. 2016 )*Days in Period
=( (953 + 1054) / 2 ) / 945*365
=1003.5 / 945*365
=387.60

Brown-Forman Corp's Days Inventory for the quarter that ended in Jan. 2017 is calculated as:

Days Inventory (Q: Jan. 2017 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Oct. 2016 ) + Inventory (Q: Jan. 2017 )) / 2 ) / COGS (Q: Jan. 2017 )*Days in Period
=( (1286 + 1238) / 2 ) / 272*365 / 4
=1262 / 272*365 / 4
=423.37

* 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).

Brown-Forman Corp's Days Sales of Inventory for the three months ended in Jan. 2017 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=1262/808*365 / 4
=142.52

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

Brown-Forman Corp's Inventory Turnover for the three months ended in Jan. 2017 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.

Brown-Forman Corp's Inventory to Revenue for the three months ended in Jan. 2017 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.

Brown-Forman Corp Annual Data

Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15Apr16
DaysInventory 298.64283.73269.91277.15274.75267.20314.17341.61352.14387.60

Brown-Forman Corp Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
DaysInventory 326.87331.83401.20436.07357.85376.86440.41508.02418.17423.37
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