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Cisco Systems Inc (NAS:CSCO)
Days Inventory
30.35 (As of Oct. 2014)

Cisco Systems Inc's average inventory for the three months ended in Oct. 2014 was $1,634 Mil. Cisco Systems Inc's cost of goods sold for the three months ended in Oct. 2014 was $4,912 Mil. Hence, Cisco Systems Inc's days inventory for the three months ended in Oct. 2014 was 30.35.

Cisco Systems Inc's days inventory increased from Oct. 2013 (28.69) to Oct. 2014 (30.35). It might indicate that Cisco Systems Inc's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Cisco Systems Inc's days sales of inventory (DSI) for the three months ended in Oct. 2014 was 12.17.

Inventory turnover measures how fast the company turns over its inventory within a year. Cisco Systems Inc's inventory turnover for the three months ended in Oct. 2014 was 3.01.

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. Cisco Systems Inc's inventory to revenue ratio for the three months ended in Oct. 2014 was 0.13.


Definition

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

Cisco Systems Inc's Days Inventory for the fiscal year that ended in Jul. 2014 is calculated as

Days Inventory (A: Jul. 2014 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Jul. 2013 ) + Inventory (A: Jul. 2014 )) / 2 ) / COGS (A: Jul. 2014 )*Days in Period
=( (1476 + 1591) / 2 ) / 19373*365
=1533.5 / 19373*365
=28.89

Cisco Systems Inc's Days Inventory for the quarter that ended in Oct. 2014 is calculated as:

Days Inventory (Q: Oct. 2014 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Jul. 2014 ) + Inventory (Q: Oct. 2014 )) / 2 ) / COGS (Q: Oct. 2014 )*Days in Period
=( (1591 + 1676) / 2 ) / 4912*365 / 4
=1633.5 / 4912*365 / 4
=30.35

* 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).

Cisco Systems Inc's Days Sales of Inventory for the three months ended in Oct. 2014 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=1633.5/12245*365 / 4
=12.17

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

Cisco Systems Inc's Inventory Turnover for the three months ended in Oct. 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.

Cisco Systems Inc's Inventory to Revenue for the three months ended in Oct. 2014 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.

Cisco Systems Inc Annual Data

Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14
DaysInventory 56.2150.0139.0532.8832.3630.4430.7732.1929.8928.89

Cisco Systems Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
DaysInventory 31.3133.1831.5029.5126.5028.6926.4230.9228.7430.35
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