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BHP Billiton Ltd (NYSE:BHP)
Days Inventory
46.55 (As of Jun. 2014)

BHP Billiton Ltd's average inventory for the six months ended in Jun. 2014 was $5,965 Mil. BHP Billiton Ltd's cost of goods sold for the six months ended in Jun. 2014 was $23,385 Mil. Hence, BHP Billiton Ltd's days inventory for the six months ended in Jun. 2014 was 46.55.

BHP Billiton Ltd's days inventory increased from Jun. 2013 (46.45) to Jun. 2014 (46.55). It might indicate that BHP Billiton Ltd's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). BHP Billiton Ltd's days sales of inventory (DSI) for the six months ended in Jun. 2014 was 32.73.

Inventory turnover measures how fast the company turns over its inventory within a year. BHP Billiton Ltd's inventory turnover for the six months ended in Jun. 2014 was 3.92.

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. BHP Billiton Ltd's inventory to revenue ratio for the six months ended in Jun. 2014 was 0.18.


Definition

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

BHP Billiton Ltd's Days Inventory for the fiscal year that ended in Jun. 2014 is calculated as

Days Inventory
=( (Inventory (A: Jun. 2013 )+Inventory (A: Jun. 2014 ))/ 2 )/Cost of Goods Sold*Days in Period
=( (5821+6013)/ 2 )/23385*365
=5917/23385*365
=92.35

BHP Billiton Ltd's Days Inventory for the quarter that ended in Jun. 2014 is calculated as:

Days Inventory
=( (Inventory (Q: Dec. 2013 )+Inventory (Q: Jun. 2014 ))/ 2 )/Cost of Goods Sold*Days in Period
=( (5917+6013)/ 2 )/23385*365 / 2
=5965/23385*365 / 2
=46.55

* 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).

BHP Billiton Ltd's Days Sales of Inventory for the six months ended in Jun. 2014 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=5965/33258*365 / 2
=32.73

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

BHP Billiton Ltd's Inventory Turnover for the six months ended in Jun. 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.

BHP Billiton Ltd's Inventory to Revenue for the six months ended in Jun. 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.

BHP Billiton Ltd Annual Data

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
DaysInventory 53.1188.8090.73108.94148.91290.8990.3084.7690.3792.35

BHP Billiton Ltd Semi-Annual Data

Dec09Jun10Dec10Jun11Dec11Jun12Dec12Jun13Dec13Jun14
DaysInventory 0.00148.810.0046.280.0043.240.0046.450.0046.55
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