Switch to:
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Homeinns Hotel Group (NAS:HMIN)
Days Inventory
2.23 (As of Sep. 2015)

Homeinns Hotel Group's average inventory for the three months ended in Sep. 2015 was \$5.5 Mil. Homeinns Hotel Group's cost of goods sold for the three months ended in Sep. 2015 was \$223.1 Mil. Hence, Homeinns Hotel Group's days inventory for the three months ended in Sep. 2015 was 2.23.

Homeinns Hotel Group's days inventory declined from Sep. 2014 (2.37) to Sep. 2015 (2.23).

Inventory can be measured by Days Sales of Inventory (DSI). Homeinns Hotel Group's days sales of inventory (DSI) for the three months ended in Sep. 2015 was 1.82.

Inventory turnover measures how fast the company turns over its inventory within a year. Homeinns Hotel Group's inventory turnover for the three months ended in Sep. 2015 was 40.86.

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. Homeinns Hotel Group's inventory to revenue ratio for the three months ended in Sep. 2015 was 0.02.

Definition

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

Homeinns Hotel Group's Days Inventory for the fiscal year that ended in Dec. 2014 is calculated as

 Days Inventory (A: Dec. 2014 ) = Average Inventory / COGS * Days in Period = ( (Inventory (A: Dec. 2013 ) + Inventory (A: Dec. 2014 )) / 2 ) / COGS (A: Dec. 2014 ) * Days in Period = ( (6.78833679081 + 7.18191513428) / 2 ) / 844.190446951 * 365 = 6.98512596254 / 844.190446951 * 365 = 3.02

Homeinns Hotel Group's Days Inventory for the quarter that ended in Sep. 2015 is calculated as:

 Days Inventory (Q: Sep. 2015 ) = Average Inventory / COGS * Days in Period = ( (Inventory (Q: Jun. 2015 ) + Inventory (Q: Sep. 2015 )) / 2 ) / COGS (Q: Sep. 2015 ) * Days in Period = ( (5.76049120093 + 5.16175639173) / 2 ) / 223.119228595 * 365 / 4 = 5.46112379633 / 223.119228595 * 365 / 4 = 2.23

* 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).

Homeinns Hotel Group's Days Sales of Inventory for the three months ended in Sep. 2015 is calculated as

 Days Sales of Inventory (DSI) = Average Inventory / Revenue * Days in Period = 5.46112379633 / 274.358942145 * 365 / 4 = 1.82

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

Homeinns Hotel Group's Inventory Turnover for the three months ended in Sep. 2015 is calculated as

 Inventory Turnover = Cost of Goods Sold / Average Inventory = 223.119228595 / 5.46112379633 = 40.86

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.

Homeinns Hotel Group's Inventory to Revenue for the three months ended in Sep. 2015 is calculated as

 Inventory to Revenue = Average Inventory / Revenue = 5.46112379633 / 274.358942145 = 0.02

* 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

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Homeinns Hotel Group Annual Data

 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 DaysInventory 7.91 7.66 5.43 3.86 3.32 4.15 3.21 2.97 3.02 3.27

Homeinns Hotel Group Quarterly Data

 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 DaysInventory 2.85 1.39 0.00 1.26 2.37 2.77 2.73 2.38 2.23 2.77
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)