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GuruFocus has detected 4 Warning Signs with Ball Corp $BLL.
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Ball Corp (NYSE:BLL)
Days Inventory
66.41 (As of Dec. 2016)

Ball Corp's average inventory for the three months ended in Dec. 2016 was $1,416 Mil. Ball Corp's cost of goods sold for the three months ended in Dec. 2016 was $1,945 Mil. Hence, Ball Corp's days inventory for the three months ended in Dec. 2016 was 66.41.

BLL' s Days Inventory Range Over the Past 10 Years
Min: 53.85   Max: 61.72
Current: 61.72

53.85
61.72

During the past 13 years, Ball Corp's highest Days Inventory was 61.72. The lowest was 53.85. And the median was 56.13.

BLL's Days Inventory is ranked lower than
54% of the 309 Companies
in the Global Packaging & Containers industry.

( Industry Median: 59.87 vs. BLL: 61.72 )

Ball Corp's days inventory increased from Dec. 2015 (56.44) to Dec. 2016 (66.41). It might indicate that Ball Corp's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Ball Corp's days sales of inventory (DSI) for the three months ended in Dec. 2016 was 52.48.

Inventory turnover measures how fast the company turns over its inventory within a year. Ball Corp's inventory turnover for the three months ended in Dec. 2016 was 1.37.

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. Ball Corp's inventory to revenue ratio for the three months ended in Dec. 2016 was 0.58.


Definition

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

Ball Corp's Days Inventory for the fiscal year that ended in Dec. 2016 is calculated as

Days Inventory (A: Dec. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Dec. 2015 ) + Inventory (A: Dec. 2016 )) / 2 ) / COGS (A: Dec. 2016 )*Days in Period
=( (898 + 1413) / 2 ) / 7296*365
=1155.5 / 7296*365
=57.81

Ball Corp's Days Inventory for the quarter that ended in Dec. 2016 is calculated as:

Days Inventory (Q: Dec. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Sep. 2016 ) + Inventory (Q: Dec. 2016 )) / 2 ) / COGS (Q: Dec. 2016 )*Days in Period
=( (1418 + 1413) / 2 ) / 1945*365 / 4
=1415.5 / 1945*365 / 4
=66.41

* 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).

Ball Corp's Days Sales of Inventory for the three months ended in Dec. 2016 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=1415.5/2461*365 / 4
=52.48

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

Ball Corp's Inventory Turnover for the three months ended in Dec. 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.

Ball Corp's Inventory to Revenue for the three months ended in Dec. 2016 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.

Ball Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DaysInventory 56.6756.7761.3757.3455.5853.8555.0254.0754.0957.81

Ball Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DaysInventory 50.5155.4759.9150.4448.7356.4459.7469.7256.6166.41
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