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Diageo PLC (NYSE:DEO)
Days Inventory
428.65 (As of Jun. 2016)

Diageo PLC's average inventory for the six months ended in Jun. 2016 was $6,536 Mil. Diageo PLC's cost of goods sold for the six months ended in Jun. 2016 was $2,783 Mil. Hence, Diageo PLC's days inventory for the six months ended in Jun. 2016 was 428.65.

DEO' s Days Inventory Range Over the Past 10 Years
Min: 272.7   Max: 392.95
Current: 387.52

272.7
392.95

During the past 13 years, Diageo PLC's highest Days Inventory was 392.95. The lowest was 272.70. And the median was 319.14.

DEO's Days Inventory is ranked lower than
84% of the 207 Companies
in the Global Beverages - Wineries & Distilleries industry.

( Industry Median: 95.82 vs. DEO: 387.52 )

Diageo PLC's days inventory increased from Jun. 2015 (384.43) to Jun. 2016 (428.65). It might indicate that Diageo PLC's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Diageo PLC's days sales of inventory (DSI) for the six months ended in Jun. 2016 was 172.11.

Inventory turnover measures how fast the company turns over its inventory within a year. Diageo PLC's inventory turnover for the six months ended in Jun. 2016 was 0.43.

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. Diageo PLC's inventory to revenue ratio for the six months ended in Jun. 2016 was 0.94.


Definition

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

Diageo PLC's Days Inventory for the fiscal year that ended in Jun. 2016 is calculated as

Days Inventory (A: Jun. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Jun. 2015 ) + Inventory (A: Jun. 2016 )) / 2 ) / COGS (A: Jun. 2016 )*Days in Period
=( (7124.6105919 + 6504.26136364) / 2 ) / 6038.35227273*365
=6814.43597777 / 6038.35227273*365
=411.91

Diageo PLC's Days Inventory for the quarter that ended in Jun. 2016 is calculated as:

Days Inventory (Q: Jun. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Dec. 2015 ) + Inventory (Q: Jun. 2016 )) / 2 ) / COGS (Q: Jun. 2016 )*Days in Period
=( (6567.36526946 + 6504.26136364) / 2 ) / 2782.67045455*365 / 2
=6535.81331655 / 2782.67045455*365 / 2
=428.65

* 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).

Diageo PLC's Days Sales of Inventory for the six months ended in Jun. 2016 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=6535.81331655/6930.39772727*365 / 2
=172.11

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

Diageo PLC's Inventory Turnover for the six months ended in Jun. 2016 is calculated as

Inventory Turnover=Cost of Goods Sold / Average Inventory
=2782.67045455 / 6535.81331655
=0.43

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.

Diageo PLC's Inventory to Revenue for the six months ended in Jun. 2016 is calculated as

Inventory to Revenue=Average Inventory / Revenue
=6535.81331655 / 6930.39772727
=0.94

* 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.

Diageo PLC Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
DaysInventory 284.49294.29298.43306.47302.11328.50338.07365.58362.64411.91

Diageo PLC Semi-Annual Data

Dec11Jun12Dec12Jun13Dec13Jun14Dec14Jun15Dec15Jun16
DaysInventory 306.94348.99323.95361.35344.22419.11344.33384.43364.13428.65
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