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The Estee Lauder Companies Inc (NYSE:EL)
Days Inventory
201.60 (As of Mar. 2016)

The Estee Lauder Companies Inc's average inventory for the three months ended in Mar. 2016 was $1,114 Mil. The Estee Lauder Companies Inc's cost of goods sold for the three months ended in Mar. 2016 was $504 Mil. Hence, The Estee Lauder Companies Inc's days inventory for the three months ended in Mar. 2016 was 201.60.

EL' s Days Inventory Range Over the Past 10 Years
Min: 161.77   Max: 218.05
Current: 192.56

161.77
218.05

During the past 13 years, The Estee Lauder Companies Inc's highest Days Inventory was 218.05. The lowest was 161.77. And the median was 172.28.

EL's Days Inventory is ranked lower than
90% of the 1476 Companies
in the Global Household & Personal Products industry.

( Industry Median: 65.89 vs. EL: 192.56 )

The Estee Lauder Companies Inc's days inventory increased from Mar. 2015 (198.27) to Mar. 2016 (201.60). It might indicate that The Estee Lauder Companies Inc's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). The Estee Lauder Companies Inc's days sales of inventory (DSI) for the three months ended in Mar. 2016 was 38.26.

Inventory turnover measures how fast the company turns over its inventory within a year. The Estee Lauder Companies Inc's inventory turnover for the three months ended in Mar. 2016 was 0.45.

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. The Estee Lauder Companies Inc's inventory to revenue ratio for the three months ended in Mar. 2016 was 0.42.


Definition

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

The Estee Lauder Companies Inc's Days Inventory for the fiscal year that ended in Jun. 2015 is calculated as

Days Inventory (A: Jun. 2015 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Jun. 2014 ) + Inventory (A: Jun. 2015 )) / 2 ) / COGS (A: Jun. 2015 )*Days in Period
=( (1294 + 1215.8) / 2 ) / 2100.6*365
=1254.9 / 2100.6*365
=218.05

The Estee Lauder Companies 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
=( (1077.4 + 1150.5) / 2 ) / 504.2*365 / 4
=1113.95 / 504.2*365 / 4
=201.60

* 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).

The Estee Lauder Companies 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
=1113.95/2656.5*365 / 4
=38.26

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

The Estee Lauder Companies 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.

The Estee Lauder Companies Inc's Inventory to Revenue for the three months ended in Mar. 2016 is calculated as

Inventory to Revenue=Average Inventory / Revenue
=1113.95 / 2656.5
=0.42

* 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.

The Estee Lauder Companies Inc Annual Data

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
DaysInventory 166.05166.80168.44172.86161.77171.69180.98188.95203.61218.05

The Estee Lauder Companies Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DaysInventory 183.74216.03214.48216.90188.62198.27214.00189.12174.61201.60
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