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GuruFocus has detected 3 Warning Signs with Fabrinet $FN.
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Fabrinet (NYSE:FN)
Days Inventory
62.17 (As of Dec. 2016)

Fabrinet's average inventory for the three months ended in Dec. 2016 was $210 Mil. Fabrinet's cost of goods sold for the three months ended in Dec. 2016 was $308 Mil. Hence, Fabrinet's days inventory for the three months ended in Dec. 2016 was 62.17.

FN' s Days Inventory Range Over the Past 10 Years
Min: 55.7   Max: 76.11
Current: 61.28

55.7
76.11

During the past 11 years, Fabrinet's highest Days Inventory was 76.11. The lowest was 55.70. And the median was 62.32.

FN's Days Inventory is ranked higher than
59% of the 2184 Companies
in the Global Consumer Electronics industry.

( Industry Median: 72.14 vs. FN: 61.28 )

Fabrinet's days inventory declined from Dec. 2015 (63.40) to Dec. 2016 (62.17).

Inventory can be measured by Days Sales of Inventory (DSI). Fabrinet's days sales of inventory (DSI) for the three months ended in Dec. 2016 was 54.55.

Inventory turnover measures how fast the company turns over its inventory within a year. Fabrinet's inventory turnover for the three months ended in Dec. 2016 was 1.47.

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. Fabrinet's inventory to revenue ratio for the three months ended in Dec. 2016 was 0.60.


Definition

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

Fabrinet'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
=( (130.613 + 181.499) / 2 ) / 857.224*365
=156.056 / 857.224*365
=66.45

Fabrinet'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
=( (205.484 + 214.375) / 2 ) / 308.11*365 / 4
=209.9295 / 308.11*365 / 4
=62.17

* 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).

Fabrinet'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
=209.9295/351.156*365 / 4
=54.55

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

Fabrinet'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.

Fabrinet's Inventory to Revenue for the three months ended in Dec. 2016 is calculated as

Inventory to Revenue=Average Inventory / Revenue
=209.9295 / 351.156
=0.60

* 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.

Fabrinet Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
DaysInventory 63.3359.9855.7060.3657.5576.1161.3064.5667.9166.45

Fabrinet Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DaysInventory 68.4469.9569.1964.5365.6563.4060.4062.3560.3862.17
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