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GuruFocus has detected 2 Warning Signs with TechnipFMC PLC $FTI.
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TechnipFMC PLC (NYSE:FTI)
Days Inventory
132.39 (As of Sep. 2016)

TechnipFMC PLC's average inventory for the three months ended in Sep. 2016 was $4,061 Mil. TechnipFMC PLC's cost of goods sold for the three months ended in Sep. 2016 was $2,799 Mil. Hence, TechnipFMC PLC's days inventory for the three months ended in Sep. 2016 was 132.39.

During the past 13 years, TechnipFMC PLC's highest Days Inventory was 16.10. The lowest was 0.00. And the median was 14.56.

TechnipFMC PLC's days inventory increased from Sep. 2015 (125.11) to Sep. 2016 (132.39). It might indicate that TechnipFMC PLC's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). TechnipFMC PLC's days sales of inventory (DSI) for the three months ended in Sep. 2016 was 113.14.

Inventory turnover measures how fast the company turns over its inventory within a year. TechnipFMC PLC's inventory turnover for the three months ended in Sep. 2016 was 0.69.

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. TechnipFMC PLC's inventory to revenue ratio for the three months ended in Sep. 2016 was 1.24.


Definition

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

TechnipFMC PLC's Days Inventory for the fiscal year that ended in Dec. 2015 is calculated as

Days Inventory (A: Dec. 2015 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Dec. 2014 ) + Inventory (A: Dec. 2015 )) / 2 ) / COGS (A: Dec. 2015 )*Days in Period
=( (432.536 + 0) / 2 ) / 9721.864*365
=216.268 / 9721.864*365
=8.12

TechnipFMC PLC's Days Inventory for the quarter that ended in Sep. 2016 is calculated as:

Days Inventory (Q: Sep. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Jun. 2016 ) + Inventory (Q: Sep. 2016 )) / 2 ) / COGS (Q: Sep. 2016 )*Days in Period
=( (4024.761 + 4096.886) / 2 ) / 2798.869*365 / 4
=4060.8235 / 2798.869*365 / 4
=132.39

* 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).

TechnipFMC PLC's Days Sales of Inventory for the three months ended in Sep. 2016 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=4060.8235/3275.22*365 / 4
=113.14

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

TechnipFMC PLC's Inventory Turnover for the three months ended in Sep. 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.

TechnipFMC PLC's Inventory to Revenue for the three months ended in Sep. 2016 is calculated as

Inventory to Revenue=Average Inventory / Revenue
=4060.8235 / 3275.22
=1.24

* 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.

TechnipFMC PLC Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DaysInventory 7.4411.7414.9516.9015.8114.9014.2314.168.120.00

TechnipFMC PLC Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DaysInventory 133.62128.4373.91119.62125.11259.1265.66135.03132.390.00
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