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Brocade Communications Systems Inc (NAS:BRCD)
Days Inventory
20.15 (As of Jul. 2014)

Brocade Communications Systems Inc's average inventory for the three months ended in Jul. 2014 was $41 Mil. Brocade Communications Systems Inc's cost of goods sold for the three months ended in Jul. 2014 was $184 Mil. Hence, Brocade Communications Systems Inc's days inventory for the three months ended in Jul. 2014 was 20.15.

Brocade Communications Systems Inc's days inventory declined from Jul. 2013 (23.74) to Jul. 2014 (20.15).

Inventory can be measured by Days Sales of Inventory (DSI). Brocade Communications Systems Inc's days sales of inventory (DSI) for the three months ended in Jul. 2014 was 6.79.

Inventory turnover measures how fast the company turns over its inventory within a year. Brocade Communications Systems Inc's inventory turnover for the three months ended in Jul. 2014 was 4.52.

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. Brocade Communications Systems Inc's inventory to revenue ratio for the three months ended in Jul. 2014 was 0.07.


Definition

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

Brocade Communications Systems Inc's Days Inventory for the fiscal year that ended in Oct. 2013 is calculated as

Days Inventory
=( (Inventory (A: Oct. 2012 )+Inventory (A: Oct. 2013 ))/ 2 )/Cost of Goods Sold*Days in Period
=( (68.179+45.344)/ 2 )/813.985*365
=56.7615/813.985*365
=25.45

Brocade Communications Systems Inc's Days Inventory for the quarter that ended in Jul. 2014 is calculated as:

Days Inventory
=( (Inventory (Q: Apr. 2014 )+Inventory (Q: Jul. 2014 ))/ 2 )/Cost of Goods Sold*Days in Period
=( (40.773+40.586)/ 2 )/183.751*91
=40.6795/183.751*91
=20.15

* 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).

Brocade Communications Systems Inc's Days Sales of Inventory for the three months ended in Jul. 2014 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=40.6795/545.464*91
=6.79

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

Brocade Communications Systems Inc's Inventory Turnover for the three months ended in Jul. 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.

Brocade Communications Systems Inc's Inventory to Revenue for the three months ended in Jul. 2014 is calculated as

Inventory to Revenue=Average Inventory / Revenue
=40.6795 / 545.464
=0.07

* 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.

Brocade Communications Systems Inc Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
DaysInventory 6.4912.0811.968.5611.8518.5631.6131.8930.3925.45

Brocade Communications Systems Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
DaysInventory 35.8432.9829.7627.1325.0823.7422.2521.0120.9320.15
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