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GuruFocus has detected 5 Warning Signs with General Electric Co $GE.
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General Electric Co (NYSE:GE)
Days Inventory
89.18 (As of Dec. 2016)

General Electric Co's average inventory for the three months ended in Dec. 2016 was $23,235 Mil. General Electric Co's cost of goods sold for the three months ended in Dec. 2016 was $23,773 Mil. Hence, General Electric Co's days inventory for the three months ended in Dec. 2016 was 89.18.

GE' s Days Inventory Range Over the Past 10 Years
Min: 57.22   Max: 98.14
Current: 98.14

57.22
98.14

During the past 13 years, General Electric Co's highest Days Inventory was 98.14. The lowest was 57.22. And the median was 69.65.

GE's Days Inventory is ranked lower than
51% of the 1543 Companies
in the Global Diversified Industrials industry.

( Industry Median: 95.55 vs. GE: 98.14 )

General Electric Co's days inventory increased from Dec. 2015 (80.87) to Dec. 2016 (89.18). It might indicate that General Electric Co's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). General Electric Co's days sales of inventory (DSI) for the three months ended in Dec. 2016 was 64.07.

Inventory turnover measures how fast the company turns over its inventory within a year. General Electric Co's inventory turnover for the three months ended in Dec. 2016 was 1.02.

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. General Electric Co's inventory to revenue ratio for the three months ended in Dec. 2016 was 0.70.


Definition

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

General Electric Co's Days Inventory for the fiscal year that ended in Dec. 2016 is calculated as

Days Inventory (A: Dec. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Dec. 2015 ) + Inventory (A: Dec. 2016 )) / 2 ) / COGS (A: Dec. 2016 )*Days in Period
=( (22515 + 22353) / 2 ) / 87483*365
=22434 / 87483*365
=93.60

General Electric Co'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
=( (24116 + 22353) / 2 ) / 23773*365 / 4
=23234.5 / 23773*365 / 4
=89.18

* 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).

General Electric Co'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
=23234.5/33089*365 / 4
=64.07

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

General Electric Co'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.

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

* 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.

General Electric Co Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DaysInventory 57.2257.8961.6859.8467.6771.6374.7476.3488.7393.60

General Electric Co Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DaysInventory 90.4666.5886.7481.0387.2980.87104.0299.13106.2889.18
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