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GlaxoSmithKline PLC (NYSE:GSK)
Days Inventory
217.25 (As of Jun. 2014)

GlaxoSmithKline PLC's inventory for the three months ended in Jun. 2014 was $7,015 Mil. GlaxoSmithKline PLC's cost of goods sold for the three months ended in Jun. 2014 was $2,939 Mil. Hence, GlaxoSmithKline PLC's days inventory for the three months ended in Jun. 2014 was 217.25.

GlaxoSmithKline PLC's days inventory increased from Jun. 2013 (191.18) to Jun. 2014 (217.25). It might indicate that GlaxoSmithKline PLC's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). GlaxoSmithKline PLC's days sales of inventory (DSI) for the three months ended in Jun. 2014 was 67.27.

Inventory turnover measures how fast the company turns over its inventory within a year. GlaxoSmithKline PLC's inventory turnover for the three months ended in Jun. 2014 was 0.42.

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. GlaxoSmithKline PLC's inventory to revenue ratio for the three months ended in Jun. 2014 was 0.74.


Definition

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

GlaxoSmithKline PLC's Days Inventory for the fiscal year that ended in Dec. 2013 is calculated as

Days Inventory=Inventory/Cost of Goods Sold*Days in Period
=6425.04118616/14143.3278418*365
=165.81

GlaxoSmithKline PLC's Days Inventory for the quarter that ended in Jun. 2014 is calculated as:

Days Inventory=Inventory/Cost of Goods Sold*Days in Period
=7015.35836177/2938.5665529*91
=217.25

* 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).

GlaxoSmithKline PLC's Days Sales of Inventory for the three months ended in Jun. 2014 is calculated as

Days Sales of Inventory (DSI)=Inventory/Revenue*Days in Period
=7015.35836177/9489.76109215*91
=67.27

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

GlaxoSmithKline PLC's Inventory Turnover for the three months ended in Jun. 2014 is calculated as

Inventory Turnover=Cost of Goods Sold / Average Inventory
=2938.5665529 / 7015.35836177
=0.42

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.

GlaxoSmithKline PLC's Inventory to Revenue for the three months ended in Jun. 2014 is calculated as

Inventory to Revenue=Inventory / Revenue
=7015.35836177 / 9489.76109215
=0.74

* 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.

GlaxoSmithKline PLC Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DaysInventory 183.57166.78177.53214.71230.78201.00177.32184.84183.52165.81

GlaxoSmithKline PLC Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DaysInventory 200.62180.13175.81179.60193.28191.18179.63140.50213.69217.25
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