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GuruFocus has detected 5 Warning Signs with Enterprise Products Partners LP $EPD.
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Enterprise Products Partners LP (NYSE:EPD)
Days Inventory
28.74 (As of Dec. 2016)

Enterprise Products Partners LP's average inventory for the three months ended in Dec. 2016 was $1,767 Mil. Enterprise Products Partners LP's cost of goods sold for the three months ended in Dec. 2016 was $5,609 Mil. Hence, Enterprise Products Partners LP's days inventory for the three months ended in Dec. 2016 was 28.74.

EPD' s Days Inventory Range Over the Past 10 Years
Min: 6.4   Max: 27.94
Current: 27.94

6.4
27.94

During the past 13 years, Enterprise Products Partners LP's highest Days Inventory was 27.94. The lowest was 6.40. And the median was 9.46.

EPD's Days Inventory is ranked lower than
68% of the 81 Companies
in the Global Oil & Gas Midstream industry.

( Industry Median: 16.16 vs. EPD: 27.94 )

Enterprise Products Partners LP's days inventory increased from Dec. 2015 (18.48) to Dec. 2016 (28.74). It might indicate that Enterprise Products Partners LP's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Enterprise Products Partners LP's days sales of inventory (DSI) for the three months ended in Dec. 2016 was 24.88.

Inventory turnover measures how fast the company turns over its inventory within a year. Enterprise Products Partners LP's inventory turnover for the three months ended in Dec. 2016 was 3.18.

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. Enterprise Products Partners LP's inventory to revenue ratio for the three months ended in Dec. 2016 was 0.27.


Definition

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

Enterprise Products Partners LP's Days Inventory for the fiscal year that ended in Dec. 2016 is calculated as

Days Inventory (A: Dec. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Dec. 2015 ) + Inventory (A: Dec. 2016 )) / 2 ) / COGS (A: Dec. 2016 )*Days in Period
=( (1038.1 + 1770.5) / 2 ) / 19643.5*365
=1404.3 / 19643.5*365
=26.09

Enterprise Products Partners LP's Days Inventory for the quarter that ended in Dec. 2016 is calculated as:

Days Inventory (Q: Dec. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Sep. 2016 ) + Inventory (Q: Dec. 2016 )) / 2 ) / COGS (Q: Dec. 2016 )*Days in Period
=( (1762.5 + 1770.5) / 2 ) / 5608.7*365 / 4
=1766.5 / 5608.7*365 / 4
=28.74

* 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).

Enterprise Products Partners LP's Days Sales of Inventory for the three months ended in Dec. 2016 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=1766.5/6478.8*365 / 4
=24.88

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

Enterprise Products Partners LP's Inventory Turnover for the three months ended in Dec. 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.

Enterprise Products Partners LP's Inventory to Revenue for the three months ended in Dec. 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.

Enterprise Products Partners LP Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DaysInventory 8.876.408.3210.719.9210.499.008.7015.8226.09

Enterprise Products Partners LP Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DaysInventory 11.6212.7912.8913.3117.4518.4824.9827.8831.3228.74
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