Switch to:
Brown-Forman Corp (NYSE:BF.B)
Days Inventory
436.07 (As of Jul. 2015)

Brown-Forman Corp's average inventory for the three months ended in Jul. 2015 was $994 Mil. Brown-Forman Corp's cost of goods sold for the three months ended in Jul. 2015 was $208 Mil. Hence, Brown-Forman Corp's days inventory for the three months ended in Jul. 2015 was 436.07.

Brown-Forman Corp's days inventory increased from Jul. 2014 (397.81) to Jul. 2015 (436.07). 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 Jul. 2015 was 129.76.

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 Jul. 2015 was 0.21.

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 Jul. 2015 was 1.42.


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. 2015 is calculated as

Days Inventory (A: Apr. 2015 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Apr. 2014 ) + Inventory (A: Apr. 2015 )) / 2 ) / COGS (A: Apr. 2015 )*Days in Period
=( (882 + 953) / 2 ) / 951*365
=917.5 / 951*365
=352.14

Brown-Forman Corp's Days Inventory for the quarter that ended in Jul. 2015 is calculated as:

Days Inventory (Q: Jul. 2015 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Apr. 2015 ) + Inventory (Q: Jul. 2015 )) / 2 ) / COGS (Q: Jul. 2015 )*Days in Period
=( (953 + 1035) / 2 ) / 208*365 / 4
=994 / 208*365 / 4
=436.07

* 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).

Brown-Forman Corp's Days Sales of Inventory for the three months ended in Jul. 2015 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=994/699*365 / 4
=129.76

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 Jul. 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.

Brown-Forman Corp's Inventory to Revenue for the three months ended in Jul. 2015 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.

Brown-Forman Corp Annual Data

Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15
DaysInventory 281.78298.64283.73269.91277.15274.81267.26314.17341.61352.14

Brown-Forman Corp Quarterly Data

Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15
DaysInventory 371.78371.33315.11323.76408.53397.81326.87331.83401.20436.07
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)

GuruFocus Premium Plus Membership

FEEDBACK