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Greenway Medical Technologies Inc (NYSE:GWAY)
Days Inventory
1.79 (As of Jun. 2013)

Greenway Medical Technologies Inc's average inventory for the three months ended in Jun. 2013 was \$0.3 Mil. Greenway Medical Technologies Inc's cost of goods sold for the three months ended in Jun. 2013 was \$17.2 Mil. Hence, Greenway Medical Technologies Inc's days inventory for the three months ended in Jun. 2013 was 1.79.

Greenway Medical Technologies Inc's days inventory declined from Jun. 2012 (2.70) to Jun. 2013 (1.79).

Inventory can be measured by Days Sales of Inventory (DSI). Greenway Medical Technologies Inc's days sales of inventory (DSI) for the three months ended in Jun. 2013 was 0.87.

Inventory turnover measures how fast the company turns over its inventory within a year. Greenway Medical Technologies Inc's inventory turnover for the three months ended in Jun. 2013 was 51.09.

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. Greenway Medical Technologies Inc's inventory to revenue ratio for the three months ended in Jun. 2013 was 0.01.

Definition

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

Greenway Medical Technologies Inc's Days Inventory for the fiscal year that ended in Jun. 2013 is calculated as

 Days Inventory (A: Jun. 2013 ) = Average Inventory / COGS * Days in Period = ( (Inventory (A: Jun. 2012 ) + Inventory (A: Jun. 2013 )) / 2 ) / COGS (A: Jun. 2013 ) * Days in Period = ( (0.281 + 0.284) / 2 ) / 64.459 * 365 = 0.2825 / 64.459 * 365 = 1.60

Greenway Medical Technologies Inc's Days Inventory for the quarter that ended in Jun. 2013 is calculated as:

 Days Inventory (Q: Jun. 2013 ) = Average Inventory / COGS * Days in Period = ( (Inventory (Q: Mar. 2013 ) + Inventory (Q: Jun. 2013 )) / 2 ) / COGS (Q: Jun. 2013 ) * Days in Period = ( (0.391 + 0.284) / 2 ) / 17.244 * 365 / 4 = 0.3375 / 17.244 * 365 / 4 = 1.79

* 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).

Greenway Medical Technologies Inc's Days Sales of Inventory for the three months ended in Jun. 2013 is calculated as

 Days Sales of Inventory (DSI) = Average Inventory / Revenue * Days in Period = 0.3375 / 35.526 * 365 / 4 = 0.87

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

Greenway Medical Technologies Inc's Inventory Turnover for the three months ended in Jun. 2013 is calculated as

 Inventory Turnover = Cost of Goods Sold / Average Inventory = 17.244 / 0.3375 = 51.09

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.

Greenway Medical Technologies Inc's Inventory to Revenue for the three months ended in Jun. 2013 is calculated as

 Inventory to Revenue = Average Inventory / Revenue = 0.3375 / 35.526 = 0.01

* 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.

Greenway Medical Technologies Inc Annual Data

 Jun09 Jun10 Jun11 Jun12 Jun13 DaysInventory 0.00 0.00 0.00 0.00 0.00 8.32 5.34 3.54 2.42 1.60

Greenway Medical Technologies Inc Quarterly Data

 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 DaysInventory 4.16 3.91 4.01 4.38 4.05 2.70 2.27 2.22 1.81 1.79
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