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Forest Laboratories Inc (NYSE:FRX)
Days Inventory
192.29 (As of Mar. 2014)

Forest Laboratories Inc's average inventory for the three months ended in Mar. 2014 was $525 Mil. Forest Laboratories Inc's cost of goods sold for the three months ended in Mar. 2014 was $249 Mil. Hence, Forest Laboratories Inc's days inventory for the three months ended in Mar. 2014 was 192.29.

Forest Laboratories Inc's days inventory declined from Mar. 2013 (199.03) to Mar. 2014 (192.29).

Inventory can be measured by Days Sales of Inventory (DSI). Forest Laboratories Inc's days sales of inventory (DSI) for the three months ended in Mar. 2014 was 43.89.

Inventory turnover measures how fast the company turns over its inventory within a year. Forest Laboratories Inc's inventory turnover for the three months ended in Mar. 2014 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. Forest Laboratories Inc's inventory to revenue ratio for the three months ended in Mar. 2014 was 0.48.


Definition

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

Forest Laboratories Inc's Days Inventory for the fiscal year that ended in Mar. 2014 is calculated as

Days Inventory (A: Mar. 2014 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Mar. 2013 ) + Inventory (A: Mar. 2014 )) / 2 ) / COGS (A: Mar. 2014 )*Days in Period
=( (393.901 + 612.664) / 2 ) / 760.642*365
=503.2825 / 760.642*365
=241.50

Forest Laboratories Inc's Days Inventory for the quarter that ended in Mar. 2014 is calculated as:

Days Inventory (Q: Mar. 2014 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Dec. 2013 ) + Inventory (Q: Mar. 2014 )) / 2 ) / COGS (Q: Mar. 2014 )*Days in Period
=( (438.002 + 612.664) / 2 ) / 249.287*365 / 4
=525.333 / 249.287*365 / 4
=192.29

* 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).

Forest Laboratories Inc's Days Sales of Inventory for the three months ended in Mar. 2014 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=525.333/1092.278*365 / 4
=43.89

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

Forest Laboratories Inc's Inventory Turnover for the three months ended in Mar. 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.

Forest Laboratories Inc's Inventory to Revenue for the three months ended in Mar. 2014 is calculated as

Inventory to Revenue=Average Inventory / Revenue
=525.333 / 1092.278
=0.48

* 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.

Forest Laboratories Inc Annual Data

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
DaysInventory 324.93350.32261.87196.00182.94170.05174.01137.04194.57241.50

Forest Laboratories Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DaysInventory 147.99150.94159.32192.41215.45199.03235.55264.09231.74192.29
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