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Cliffs Natural Resources Inc (NYSE:CLF)
Days Inventory
157.68 (As of Mar. 2016)

Cliffs Natural Resources Inc's average inventory for the three months ended in Mar. 2016 was $475 Mil. Cliffs Natural Resources Inc's cost of goods sold for the three months ended in Mar. 2016 was $275 Mil. Hence, Cliffs Natural Resources Inc's days inventory for the three months ended in Mar. 2016 was 157.68.

CLF' s Days Inventory Range Over the Past 10 Years
Min: 43.13   Max: 84.09
Current: 110.42

43.13
84.09

During the past 13 years, Cliffs Natural Resources Inc's highest Days Inventory was 84.09. The lowest was 43.13. And the median was 53.95.

CLF's Days Inventory is ranked lower than
69% of the 642 Companies
in the Global Industrial Metals & Minerals industry.

( Industry Median: 73.33 vs. CLF: 110.42 )

Cliffs Natural Resources Inc's days inventory increased from Mar. 2015 (113.39) to Mar. 2016 (157.68). It might indicate that Cliffs Natural Resources Inc's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Cliffs Natural Resources Inc's days sales of inventory (DSI) for the three months ended in Mar. 2016 was 141.73.

Inventory turnover measures how fast the company turns over its inventory within a year. Cliffs Natural Resources Inc's inventory turnover for the three months ended in Mar. 2016 was 0.58.

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. Cliffs Natural Resources Inc's inventory to revenue ratio for the three months ended in Mar. 2016 was 1.55.


Definition

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

Cliffs Natural Resources Inc's Days Inventory for the fiscal year that ended in Dec. 2015 is calculated as

Days Inventory (A: Dec. 2015 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Dec. 2014 ) + Inventory (A: Dec. 2015 )) / 2 ) / COGS (A: Dec. 2015 )*Days in Period
=( (378.7 + 440) / 2 ) / 1776.8*365
=409.35 / 1776.8*365
=84.09

Cliffs Natural Resources Inc's Days Inventory for the quarter that ended in Mar. 2016 is calculated as:

Days Inventory (Q: Mar. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Dec. 2015 ) + Inventory (Q: Mar. 2016 )) / 2 ) / COGS (Q: Mar. 2016 )*Days in Period
=( (440 + 509) / 2 ) / 274.6*365 / 4
=474.5 / 274.6*365 / 4
=157.68

* 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).

Cliffs Natural Resources Inc's Days Sales of Inventory for the three months ended in Mar. 2016 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=474.5/305.5*365 / 4
=141.73

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

Cliffs Natural Resources Inc's Inventory Turnover for the three months ended in Mar. 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.

Cliffs Natural Resources Inc's Inventory to Revenue for the three months ended in Mar. 2016 is calculated as

* 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.

Cliffs Natural Resources Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DaysInventory 63.5160.1251.0866.5945.7948.5054.3353.5643.1384.09

Cliffs Natural Resources Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DaysInventory 0.00152.49134.5298.8664.68113.39117.1590.9495.92157.68
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