Switch to:
Hovnanian Enterprises Inc (NYSE:HOV)
Days Inventory
313.74 (As of Jul. 2015)

Hovnanian Enterprises Inc's average inventory for the three months ended in Jul. 2015 was $1,576 Mil. Hovnanian Enterprises Inc's cost of goods sold for the three months ended in Jul. 2015 was $458 Mil. Hence, Hovnanian Enterprises Inc's days inventory for the three months ended in Jul. 2015 was 313.74.

HOV' s Days Inventory Range Over the Past 10 Years
Min: 246.02   Max: 323.41
Current: 298.86

246.02
323.41

During the past 13 years, Hovnanian Enterprises Inc's highest Days Inventory was 323.41. The lowest was 246.02. And the median was 283.06.

HOV's Days Inventory is ranked lower than
88% of the 694 Companies
in the Global Residential Construction industry.

( Industry Median: 81.38 vs. HOV: 298.86 )

Hovnanian Enterprises Inc's days inventory increased from Jul. 2014 (276.60) to Jul. 2015 (313.74). It might indicate that Hovnanian Enterprises Inc's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Hovnanian Enterprises Inc's days sales of inventory (DSI) for the three months ended in Jul. 2015 was 265.95.

Inventory turnover measures how fast the company turns over its inventory within a year. Hovnanian Enterprises Inc's inventory turnover for the three months ended in Jul. 2015 was 0.29.

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. Hovnanian Enterprises Inc's inventory to revenue ratio for the three months ended in Jul. 2015 was 2.91.


Definition

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

Hovnanian Enterprises Inc's Days Inventory for the fiscal year that ended in Oct. 2015 is calculated as

Days Inventory (A: Oct. 2015 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Oct. 2014 ) + Inventory (A: Oct. 2015 )) / 2 ) / COGS (A: Oct. 2015 )*Days in Period
=( (1344.31 + 1644.578) / 2 ) / 1825.667*365
=1494.444 / 1825.667*365
=298.78

Hovnanian Enterprises Inc's Days Inventory for the quarter that ended in Jul. 2015 is calculated as:

Days Inventory (Q: Jul. 2015 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Apr. 2015 ) + Inventory (Q: Jul. 2015 )) / 2 ) / COGS (Q: Jul. 2015 )*Days in Period
=( (1538.757 + 1612.489) / 2 ) / 458.269*365 / 4
=1575.623 / 458.269*365 / 4
=313.74

* 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).

Hovnanian Enterprises Inc's Days Sales of Inventory for the three months ended in Jul. 2015 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=1575.623/540.613*365 / 4
=265.95

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

Hovnanian Enterprises Inc's Inventory Turnover for the three months ended in Jul. 2015 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.

Hovnanian Enterprises Inc's Inventory to Revenue for the three months ended in Jul. 2015 is calculated as

Inventory to Revenue=Average Inventory / Revenue
=1575.623 / 540.613
=2.91

* 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.

Hovnanian Enterprises Inc Annual Data

Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15
DaysInventory 288.97300.07267.94275.77286.07323.41280.04246.02264.10298.78

Hovnanian Enterprises Inc Quarterly Data

Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15
DaysInventory 255.29214.12349.19308.91276.60214.26343.25339.48313.74238.95
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)

GuruFocus Premium Plus Membership

FEEDBACK