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Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT)
Days Inventory
78.15 (As of Jun. 2016)

Starwood Hotels & Resorts Worldwide Inc's average inventory for the three months ended in Jun. 2016 was \$185 Mil. Starwood Hotels & Resorts Worldwide Inc's cost of goods sold for the three months ended in Jun. 2016 was \$216 Mil. Hence, Starwood Hotels & Resorts Worldwide Inc's days inventory for the three months ended in Jun. 2016 was 78.15.

Starwood Hotels & Resorts Worldwide Inc's days inventory declined from Jun. 2015 (89.42) to Jun. 2016 (78.15).

Inventory can be measured by Days Sales of Inventory (DSI). Starwood Hotels & Resorts Worldwide Inc's days sales of inventory (DSI) for the three months ended in Jun. 2016 was 13.55.

Inventory turnover measures how fast the company turns over its inventory within a year. Starwood Hotels & Resorts Worldwide Inc's inventory turnover for the three months ended in Jun. 2016 was 1.17.

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. Starwood Hotels & Resorts Worldwide Inc's inventory to revenue ratio for the three months ended in Jun. 2016 was 0.15.

Definition

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

Starwood Hotels & Resorts Worldwide Inc'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 = ( (236 + 319) / 2 ) / 4255 * 365 = 277.5 / 4255 * 365 = 23.80

Starwood Hotels & Resorts Worldwide Inc'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 = ( (355 + 15) / 2 ) / 216 * 365 / 4 = 185 / 216 * 365 / 4 = 78.15

* 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).

Starwood Hotels & Resorts Worldwide Inc'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 = 185 / 1246 * 365 / 4 = 13.55

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

Starwood Hotels & Resorts Worldwide Inc's Inventory Turnover for the three months ended in Jun. 2016 is calculated as

 Inventory Turnover = Cost of Goods Sold / Average Inventory = 216 / 185 = 1.17

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.

Starwood Hotels & Resorts Worldwide Inc's Inventory to Revenue for the three months ended in Jun. 2016 is calculated as

 Inventory to Revenue = Average Inventory / Revenue = 185 / 1246 = 0.15

* 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.

Starwood Hotels & Resorts Worldwide Inc Annual Data

 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 DaysInventory 35.54 52.76 71.93 88.02 73.85 68.36 44.60 23.24 18.71 23.80

Starwood Hotels & Resorts Worldwide Inc Quarterly Data

 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 DaysInventory 17.65 16.55 16.37 18.51 20.36 89.42 21.73 25.23 29.09 78.15
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