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Freeport-McMoRan Inc (NYSE:FCX)
Days Inventory
117.67 (As of Jun. 2014)

Freeport-McMoRan Inc's average inventory for the three months ended in Jun. 2014 was $5,295 Mil. Freeport-McMoRan Inc's cost of goods sold for the three months ended in Jun. 2014 was $4,095 Mil. Hence, Freeport-McMoRan Inc's days inventory for the three months ended in Jun. 2014 was 117.67.

Freeport-McMoRan Inc's days inventory declined from Jun. 2013 (131.20) to Jun. 2014 (117.67).

Inventory can be measured by Days Sales of Inventory (DSI). Freeport-McMoRan Inc's days sales of inventory (DSI) for the three months ended in Jun. 2014 was 87.26.

Inventory turnover measures how fast the company turns over its inventory within a year. Freeport-McMoRan Inc's inventory turnover for the three months ended in Jun. 2014 was 0.77.

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. Freeport-McMoRan Inc's inventory to revenue ratio for the three months ended in Jun. 2014 was 0.96.


Definition

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

Freeport-McMoRan Inc's Days Inventory for the fiscal year that ended in Dec. 2013 is calculated as

Days Inventory
=( (Inventory (A: Dec. 2012 )+Inventory (A: Dec. 2013 ))/ 2 )/Cost of Goods Sold*Days in Period
=( (4576+5018)/ 2 )/14637*365
=4797/14637*365
=119.62

Freeport-McMoRan Inc's Days Inventory for the quarter that ended in Jun. 2014 is calculated as:

Days Inventory
=( (Inventory (Q: Mar. 2014 )+Inventory (Q: Jun. 2014 ))/ 2 )/Cost of Goods Sold*Days in Period
=( (5220+5370)/ 2 )/4095*91
=5295/4095*91
=117.67

* 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).

Freeport-McMoRan Inc's Days Sales of Inventory for the three months ended in Jun. 2014 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=5295/5522*91
=87.26

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

Freeport-McMoRan Inc's Inventory Turnover for the three months ended in Jun. 2014 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.

Freeport-McMoRan Inc's Inventory to Revenue for the three months ended in Jun. 2014 is calculated as

* 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.

Freeport-McMoRan Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DaysInventory 108.04114.3992.7267.3979.41127.72122.77122.05133.31119.62

Freeport-McMoRan Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DaysInventory 134.47126.85133.18133.84140.10131.20104.88113.56125.80117.67
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