Switch to:
Babcock & Wilcox Co (NYSE:BWC)
Days Inventory
20.07 (As of Jun. 2014)

Babcock & Wilcox Co's inventory for the three months ended in Jun. 2014 was $113 Mil. Babcock & Wilcox Co's cost of goods sold for the three months ended in Jun. 2014 was $512 Mil. Hence, Babcock & Wilcox Co's days inventory for the three months ended in Jun. 2014 was 20.07.

Babcock & Wilcox Co's days inventory increased from Jun. 2013 (14.80) to Jun. 2014 (20.07). It might indicate that Babcock & Wilcox Co's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Babcock & Wilcox Co's days sales of inventory (DSI) for the three months ended in Jun. 2014 was 14.99.

Inventory turnover measures how fast the company turns over its inventory within a year. Babcock & Wilcox Co's inventory turnover for the three months ended in Jun. 2014 was 4.53.

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. Babcock & Wilcox Co's inventory to revenue ratio for the three months ended in Jun. 2014 was 0.16.


Definition

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

Babcock & Wilcox Co's Days Inventory for the fiscal year that ended in Dec. 2013 is calculated as

Days Inventory=Inventory/Cost of Goods Sold*Days in Period
=113.058/2301.648*365
=17.93

Babcock & Wilcox Co's Days Inventory for the quarter that ended in Jun. 2014 is calculated as:

Days Inventory=Inventory/Cost of Goods Sold*Days in Period
=112.971/512.308*91
=20.07

* 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).

Babcock & Wilcox Co's Days Sales of Inventory for the three months ended in Jun. 2014 is calculated as

Days Sales of Inventory (DSI)=Inventory/Revenue*Days in Period
=112.971/686.006*91
=14.99

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

Babcock & Wilcox Co's Inventory Turnover for the three 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.

Babcock & Wilcox Co's Inventory to Revenue for the three months ended in Jun. 2014 is calculated as

Inventory to Revenue=Inventory / Revenue
=112.971 / 686.006
=0.16

* 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.

Babcock & Wilcox Co Annual Data

Dec08Dec09Dec10Dec11Dec12Dec13
DaysInventory 0.000.000.000.0017.1116.1118.2017.1918.4217.93

Babcock & Wilcox Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DaysInventory 17.8116.4619.3718.2017.2014.8017.9224.6419.8520.07
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)
Free 7-day Trial
FEEDBACK