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Diamond Foods Inc (NAS:DMND)
Days Inventory
103.87 (As of Oct. 2015)

Diamond Foods Inc's average inventory for the three months ended in Oct. 2015 was \$186.6 Mil. Diamond Foods Inc's cost of goods sold for the three months ended in Oct. 2015 was \$164.0 Mil. Hence, Diamond Foods Inc's days inventory for the three months ended in Oct. 2015 was 103.87.

Diamond Foods Inc's days inventory increased from Oct. 2014 (93.44) to Oct. 2015 (103.87). It might indicate that Diamond Foods Inc's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Diamond Foods Inc's days sales of inventory (DSI) for the three months ended in Oct. 2015 was 75.74.

Inventory turnover measures how fast the company turns over its inventory within a year. Diamond Foods Inc's inventory turnover for the three months ended in Oct. 2015 was 0.88.

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. Diamond Foods Inc's inventory to revenue ratio for the three months ended in Oct. 2015 was 0.83.

Definition

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

Diamond Foods Inc's Days Inventory for the fiscal year that ended in Jul. 2015 is calculated as

 Days Inventory (A: Jul. 2015 ) = Average Inventory / COGS * Days in Period = ( (Inventory (A: Jul. 2014 ) + Inventory (A: Jul. 2015 )) / 2 ) / COGS (A: Jul. 2015 ) * Days in Period = ( (124.273 + 158.805) / 2 ) / 636.171 * 365 = 141.539 / 636.171 * 365 = 81.21

Diamond Foods Inc's Days Inventory for the quarter that ended in Oct. 2015 is calculated as:

 Days Inventory (Q: Oct. 2015 ) = Average Inventory / COGS * Days in Period = ( (Inventory (Q: Jul. 2015 ) + Inventory (Q: Oct. 2015 )) / 2 ) / COGS (Q: Oct. 2015 ) * Days in Period = ( (158.805 + 214.472) / 2 ) / 163.97 * 365 / 4 = 186.6385 / 163.97 * 365 / 4 = 103.87

* 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).

Diamond Foods Inc's Days Sales of Inventory for the three months ended in Oct. 2015 is calculated as

 Days Sales of Inventory (DSI) = Average Inventory / Revenue * Days in Period = 186.6385 / 224.849 * 365 / 4 = 75.74

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

Diamond Foods Inc's Inventory Turnover for the three months ended in Oct. 2015 is calculated as

 Inventory Turnover = Cost of Goods Sold / Average Inventory = 163.97 / 186.6385 = 0.88

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.

Diamond Foods Inc's Inventory to Revenue for the three months ended in Oct. 2015 is calculated as

 Inventory to Revenue = Average Inventory / Revenue = 186.6385 / 224.849 = 0.83

* 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

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Diamond Foods Inc Annual Data

 Jul06 Jul07 Jul08 Jul09 Jul10 Jul11 Jul12 Jul13 Jul14 Jul15 DaysInventory 93.26 78.02 73.72 72.75 77.56 70.30 70.86 77.92 66.60 81.21

Diamond Foods Inc Quarterly Data

 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 DaysInventory 82.75 83.51 106.43 106.03 77.14 93.44 122.55 126.12 103.23 103.87
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