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

Forest Laboratories Inc's inventory for the three months ended in Mar. 2014 was \$613 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 223.65.

Forest Laboratories Inc's days inventory increased from Mar. 2013 (201.57) to Mar. 2014 (223.65). It might indicate that Forest Laboratories Inc's sales slowed down.

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 51.04.

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 0.41.

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 0.56.

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 = Inventory / Cost of Goods Sold * Days in Period = 612.664 / 760.642 * 365 = 293.99

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

 Days Inventory = Inventory / Cost of Goods Sold * Days in Period = 612.664 / 249.287 * 91 = 223.65

* 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) = Inventory / Revenue * Days in Period = 612.664 / 1092.278 * 91 = 51.04

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

 Inventory Turnover = Cost of Goods Sold / Average Inventory = 249.287 / 612.664 = 0.41

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 = Inventory / Revenue = 612.664 / 1092.278 = 0.56

* 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

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

 Mar05 Mar06 Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 DaysInventory 325.92 356.43 212.54 193.94 175.88 184.71 170.90 109.02 221.50 293.99

Forest Laboratories Inc Quarterly Data

 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 DaysInventory 146.05 124.69 156.49 207.93 226.65 201.57 253.05 271.13 218.68 223.65
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