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Brocade Communications Systems Inc (NAS:BRCD)
Days Inventory
23.55 (As of Jul. 2016)

Brocade Communications Systems Inc's average inventory for the six months ended in Jul. 2016 was $60 Mil. Brocade Communications Systems Inc's cost of goods sold for the six months ended in Jul. 2016 was $234 Mil. Hence, Brocade Communications Systems Inc's days inventory for the six months ended in Jul. 2016 was 47.10.

BRCD' s Days Inventory Range Over the Past 10 Years
Min: 8.56   Max: 31.89
Current: 24.05

8.56
31.89

During the past 13 years, Brocade Communications Systems Inc's highest Days Inventory was 31.89. The lowest was 8.56. And the median was 22.38.

BRCD's Days Inventory is ranked higher than
91% of the 2188 Companies
in the Global Data Storage industry.

( Industry Median: 72.38 vs. BRCD: 24.05 )

Brocade Communications Systems Inc's days inventory increased from Jan. 2016 (20.44) to Jul. 2016 (23.55). It might indicate that Brocade Communications Systems Inc's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Brocade Communications Systems Inc's days sales of inventory (DSI) for the six months ended in Jul. 2016 was 18.65.

Inventory turnover measures how fast the company turns over its inventory within a year. Brocade Communications Systems Inc's inventory turnover for the six months ended in Jul. 2016 was 3.87.

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 six months ended in Jul. 2016 was 0.10.


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. 2016 is calculated as

Days Inventory (A: Oct. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Oct. 2015 ) + Inventory (A: Oct. 2016 )) / 2 ) / COGS (A: Oct. 2016 )*Days in Period
=( (40.524 + 69.355) / 2 ) / 829.271*365
=54.9395 / 829.271*365
=24.18

Brocade Communications Systems Inc's Days Inventory for the quarter that ended in Jul. 2016 is calculated as:

Days Inventory (Q: Jul. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Apr. 2016 ) + Inventory (Q: Jul. 2016 )) / 2 ) / COGS (Q: Jul. 2016 )*Days in Period
=( (39.521 + 81.182) / 2 ) / 233.822*365 / 2
=60.3515 / 233.822*365 / 2
=47.10

* 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).

Brocade Communications Systems Inc's Days Sales of Inventory for the six months ended in Jul. 2016 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=60.3515/590.721*365 / 2
=18.65

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

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

Brocade Communications Systems Inc's Inventory to Revenue for the six months ended in Jul. 2016 is calculated as

Inventory to Revenue=Average Inventory / Revenue
=60.3515 / 590.721
=0.10

* 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.

Brocade Communications Systems Inc Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15Oct16
DaysInventory 8.5611.8518.5631.6131.8930.3925.4520.5819.6724.18

Brocade Communications Systems Inc Semi-Annual Data

Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16
DaysInventory 20.2019.3219.3221.3720.7619.0020.4421.6523.5528.98
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