Switch to:
Herbalife Ltd (NYSE:HLF)
Days Inventory
127.24 (As of Jun. 2016)

Herbalife Ltd's average inventory for the three months ended in Jun. 2016 was $330 Mil. Herbalife Ltd's cost of goods sold for the three months ended in Jun. 2016 was $236 Mil. Hence, Herbalife Ltd's days inventory for the three months ended in Jun. 2016 was 127.24.

HLF' s Days Inventory Range Over the Past 10 Years
Min: 103.75   Max: 151.31
Current: 138.12

103.75
151.31

During the past 13 years, Herbalife Ltd's highest Days Inventory was 151.31. The lowest was 103.75. And the median was 119.09.

HLF's Days Inventory is ranked lower than
82% of the 1486 Companies
in the Global Household & Personal Products industry.

( Industry Median: 64.07 vs. HLF: 138.12 )

Herbalife Ltd's days inventory declined from Jun. 2015 (130.71) to Jun. 2016 (127.24).

Inventory can be measured by Days Sales of Inventory (DSI). Herbalife Ltd's days sales of inventory (DSI) for the three months ended in Jun. 2016 was 25.02.

Inventory turnover measures how fast the company turns over its inventory within a year. Herbalife Ltd's inventory turnover for the three months ended in Jun. 2016 was 0.72.

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. Herbalife Ltd's inventory to revenue ratio for the three months ended in Jun. 2016 was 0.27.


Definition

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

Herbalife Ltd'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
=( (377.7 + 332) / 2 ) / 856*365
=354.85 / 856*365
=151.31

Herbalife Ltd's Days Inventory for the quarter that ended in Jun. 2016 is calculated as:

Days Inventory (Q: Jun. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Mar. 2016 ) + Inventory (Q: Jun. 2016 )) / 2 ) / COGS (Q: Jun. 2016 )*Days in Period
=( (336.5 + 322.5) / 2 ) / 236.3*365 / 4
=329.5 / 236.3*365 / 4
=127.24

* 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).

Herbalife Ltd's Days Sales of Inventory for the three months ended in Jun. 2016 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=329.5/1201.8*365 / 4
=25.02

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

Herbalife Ltd's Inventory Turnover for the three months ended in Jun. 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.

Herbalife Ltd's Inventory to Revenue for the three months ended in Jun. 2016 is calculated as

* 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.

Herbalife Ltd Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DaysInventory 122.75114.35104.72103.75107.26115.43131.86130.82135.34151.31

Herbalife Ltd Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DaysInventory 122.82118.57127.25154.89150.96130.71140.58144.55143.13127.24
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK