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GuruFocus has detected 7 Warning Signs with Energy Transfer Partners LP $ETP.
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Energy Transfer Partners LP (NYSE:ETP)
Days Inventory
40.29 (As of Dec. 2016)

Energy Transfer Partners LP's average inventory for the three months ended in Dec. 2016 was $1,658 Mil. Energy Transfer Partners LP's cost of goods sold for the three months ended in Dec. 2016 was $3,755 Mil. Hence, Energy Transfer Partners LP's days inventory for the three months ended in Dec. 2016 was 40.29.

ETP' s Days Inventory Range Over the Past 10 Years
Min: 10.98   Max: 34.68
Current: 33.67

10.98
34.68

During the past 13 years, Energy Transfer Partners LP's highest Days Inventory was 34.68. The lowest was 10.98. And the median was 22.69.

ETP's Days Inventory is ranked lower than
78% of the 81 Companies
in the Global Oil & Gas Midstream industry.

( Industry Median: 16.16 vs. ETP: 33.67 )

Energy Transfer Partners LP's days inventory declined from Dec. 2015 (44.92) to Dec. 2016 (40.29).

Warning Sign:

If a company builds up inventory, it may mean it is having difficulties selling its goods.

Inventory can be measured by Days Sales of Inventory (DSI). Energy Transfer Partners LP's days sales of inventory (DSI) for the three months ended in Dec. 2016 was 23.18.

Inventory turnover measures how fast the company turns over its inventory within a year. Energy Transfer Partners LP's inventory turnover for the three months ended in Dec. 2016 was 2.26.

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. Energy Transfer Partners LP's inventory to revenue ratio for the three months ended in Dec. 2016 was 0.25.


Definition

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

Energy Transfer 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
=( (1213 + 1712) / 2 ) / 15394*365
=1462.5 / 15394*365
=34.68

Energy Transfer 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
=( (1604 + 1712) / 2 ) / 3755*365 / 4
=1658 / 3755*365 / 4
=40.29

* 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).

Energy Transfer 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
=1658/6526*365 / 4
=23.18

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

Energy Transfer 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.

Energy Transfer 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.

Energy Transfer Partners LP Annual Data

Aug07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DaysInventory 20.8210.9831.7832.0324.5524.8813.4512.1618.0534.68

Energy Transfer Partners LP Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DaysInventory 10.7514.1014.2714.7925.6944.9232.4729.3132.0040.29
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