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Cal-Maine Foods Inc (NAS:CALM)
Days Inventory
48.09 (As of Aug. 2014)

Cal-Maine Foods Inc's average inventory for the three months ended in Aug. 2014 was $145 Mil. Cal-Maine Foods Inc's cost of goods sold for the three months ended in Aug. 2014 was $276 Mil. Hence, Cal-Maine Foods Inc's days inventory for the three months ended in Aug. 2014 was 48.09.

Cal-Maine Foods Inc's days inventory declined from Aug. 2013 (48.69) to Aug. 2014 (48.09).

Inventory can be measured by Days Sales of Inventory (DSI). Cal-Maine Foods Inc's days sales of inventory (DSI) for the three months ended in Aug. 2014 was 37.16.

Inventory turnover measures how fast the company turns over its inventory within a year. Cal-Maine Foods Inc's inventory turnover for the three months ended in Aug. 2014 was 1.90.

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. Cal-Maine Foods Inc's inventory to revenue ratio for the three months ended in Aug. 2014 was 0.41.


Definition

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

Cal-Maine Foods Inc's Days Inventory for the fiscal year that ended in May. 2014 is calculated as

Days Inventory (A: May. 2014 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: May. 2013 ) + Inventory (A: May. 2014 )) / 2 ) / COGS (A: May. 2014 )*Days in Period
=( (147.993 + 146.117) / 2 ) / 1138.143*365
=147.055 / 1138.143*365
=47.16

Cal-Maine Foods Inc's Days Inventory for the quarter that ended in Aug. 2014 is calculated as:

Days Inventory (Q: Aug. 2014 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: May. 2014 ) + Inventory (Q: Aug. 2014 )) / 2 ) / COGS (Q: Aug. 2014 )*Days in Period
=( (146.117 + 144.626) / 2 ) / 275.843*365 / 4
=145.3715 / 275.843*365 / 4
=48.09

* 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).

Cal-Maine Foods Inc's Days Sales of Inventory for the three months ended in Aug. 2014 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=145.3715/356.944*365 / 4
=37.16

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

Cal-Maine Foods Inc's Inventory Turnover for the three months ended in Aug. 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.

Cal-Maine Foods Inc's Inventory to Revenue for the three months ended in Aug. 2014 is calculated as

Inventory to Revenue=Average Inventory / Revenue
=145.3715 / 356.944
=0.41

* 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.

Cal-Maine Foods Inc Annual Data

May05May06May07May08May09May10May11May12May13May14
DaysInventory 51.3045.4745.6941.0843.9348.8549.1845.4945.0747.16

Cal-Maine Foods Inc Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
DaysInventory 46.0549.2144.8245.2049.0248.6947.0543.9748.0948.09
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