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

The Estee Lauder Companies Inc's average inventory for the three months ended in Sep. 2016 was $1,280 Mil. The Estee Lauder Companies Inc's cost of goods sold for the three months ended in Sep. 2016 was $596 Mil. Hence, The Estee Lauder Companies Inc's days inventory for the three months ended in Sep. 2016 was 195.93.

EL' s Days Inventory Range Over the Past 10 Years
Min: 161.77   Max: 218.05
Current: 197.91

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 176.92.

EL's Days Inventory is ranked lower than
90% of the 1494 Companies
in the Global Household & Personal Products industry.

( Industry Median: 64.79 vs. EL: 197.91 )

The Estee Lauder Companies Inc's days inventory increased from Sep. 2015 (189.18) to Sep. 2016 (195.93). 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 Sep. 2016 was 40.76.

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 Sep. 2016 was 0.47.

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 Sep. 2016 was 0.45.


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. 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
=( (1215.8 + 1263.4) / 2 ) / 2181.1*365
=1239.6 / 2181.1*365
=207.44

The Estee Lauder Companies Inc's Days Inventory for the quarter that ended in Sep. 2016 is calculated as:

Days Inventory (Q: Sep. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Jun. 2016 ) + Inventory (Q: Sep. 2016 )) / 2 ) / COGS (Q: Sep. 2016 )*Days in Period
=( (1263.4 + 1296) / 2 ) / 596*365 / 4
=1279.7 / 596*365 / 4
=195.93

* 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).

The Estee Lauder Companies Inc's Days Sales of Inventory for the three months ended in Sep. 2016 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=1279.7/2865*365 / 4
=40.76

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 Sep. 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 Sep. 2016 is calculated as

* 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.

The Estee Lauder Companies Inc Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
DaysInventory 166.80168.44172.86161.77171.69180.98188.95203.61218.05207.44

The Estee Lauder Companies Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DaysInventory 214.48216.90188.62198.27214.00189.18174.61201.60215.65195.93
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