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GuruFocus has detected 6 Warning Signs with Conagra Brands Inc $CAG.
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Conagra Brands Inc (NYSE:CAG)
Days Inventory
87.13 (As of Nov. 2016)

Conagra Brands Inc's average inventory for the three months ended in Nov. 2016 was $1,376 Mil. Conagra Brands Inc's cost of goods sold for the three months ended in Nov. 2016 was $1,441 Mil. Hence, Conagra Brands Inc's days inventory for the three months ended in Nov. 2016 was 87.13.

CAG' s Days Inventory Range Over the Past 10 Years
Min: 63.65   Max: 90.48
Current: 78.5

63.65
90.48

During the past 13 years, Conagra Brands Inc's highest Days Inventory was 90.48. The lowest was 63.65. And the median was 72.09.

CAG's Days Inventory is ranked lower than
59% of the 1472 Companies
in the Global Packaged Foods industry.

( Industry Median: 64.58 vs. CAG: 78.50 )

Conagra Brands Inc's days inventory declined from Nov. 2015 (102.62) to Nov. 2016 (87.13).

Inventory can be measured by Days Sales of Inventory (DSI). Conagra Brands Inc's days sales of inventory (DSI) for the three months ended in Nov. 2016 was 60.11.

Inventory turnover measures how fast the company turns over its inventory within a year. Conagra Brands Inc's inventory turnover for the three months ended in Nov. 2016 was 1.05.

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. Conagra Brands Inc's inventory to revenue ratio for the three months ended in Nov. 2016 was 0.66.


Definition

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

Conagra Brands Inc's Days Inventory for the fiscal year that ended in May. 2016 is calculated as

Days Inventory (A: May. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: May. 2015 ) + Inventory (A: May. 2016 )) / 2 ) / COGS (A: May. 2016 )*Days in Period
=( (1642.6 + 1582.1) / 2 ) / 8552.1*365
=1612.35 / 8552.1*365
=68.81

Conagra Brands Inc's Days Inventory for the quarter that ended in Nov. 2016 is calculated as:

Days Inventory (Q: Nov. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Aug. 2016 ) + Inventory (Q: Nov. 2016 )) / 2 ) / COGS (Q: Nov. 2016 )*Days in Period
=( (1637.9 + 1113.7) / 2 ) / 1440.9*365 / 4
=1375.8 / 1440.9*365 / 4
=87.13

* 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).

Conagra Brands Inc's Days Sales of Inventory for the three months ended in Nov. 2016 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=1375.8/2088.4*365 / 4
=60.11

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

Conagra Brands Inc's Inventory Turnover for the three months ended in Nov. 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.

Conagra Brands Inc's Inventory to Revenue for the three months ended in Nov. 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.

Conagra Brands Inc Annual Data

May07May08May09May10May11May12May13May14May15May16
DaysInventory 87.4473.2470.9369.7065.4563.6576.0590.4874.9168.81

Conagra Brands Inc Quarterly Data

Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16
DaysInventory 90.0566.35102.4779.1475.61102.6281.8875.4575.6087.13
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