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GuruFocus has detected 2 Warning Signs with Hovnanian Enterprises Inc $HOV.
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Hovnanian Enterprises Inc (NYSE:HOV)
Days Inventory
248.32 (As of Jan. 2017)

Hovnanian Enterprises Inc's average inventory for the three months ended in Jan. 2017 was $1,288 Mil. Hovnanian Enterprises Inc's cost of goods sold for the three months ended in Jan. 2017 was $473 Mil. Hence, Hovnanian Enterprises Inc's days inventory for the three months ended in Jan. 2017 was 248.32.

HOV' s Days Inventory Range Over the Past 10 Years
Min: 223.24   Max: 323.41
Current: 227.45

223.24
323.41

During the past 13 years, Hovnanian Enterprises Inc's highest Days Inventory was 323.41. The lowest was 223.24. And the median was 278.72.

HOV's Days Inventory is ranked lower than
85% of the 656 Companies
in the Global Residential Construction industry.

( Industry Median: 77.24 vs. HOV: 227.45 )

Hovnanian Enterprises Inc's days inventory declined from Jan. 2016 (300.28) to Jan. 2017 (248.32).

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 Jan. 2017 was 212.96.

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 Jan. 2017 was 0.37.

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 Jan. 2017 was 2.33.


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. 2016 is calculated as

Days Inventory (A: Oct. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Oct. 2015 ) + Inventory (A: Oct. 2016 )) / 2 ) / COGS (A: Oct. 2016 )*Days in Period
=( (1644.578 + 1283.084) / 2 ) / 2393.345*365
=1463.831 / 2393.345*365
=223.24

Hovnanian Enterprises Inc's Days Inventory for the quarter that ended in Jan. 2017 is calculated as:

Days Inventory (Q: Jan. 2017 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Oct. 2016 ) + Inventory (Q: Jan. 2017 )) / 2 ) / COGS (Q: Jan. 2017 )*Days in Period
=( (1283.084 + 1293.426) / 2 ) / 473.388*365 / 4
=1288.255 / 473.388*365 / 4
=248.32

* 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).

Hovnanian Enterprises Inc's Days Sales of Inventory for the three months ended in Jan. 2017 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=1288.255/552.009*365 / 4
=212.96

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 Jan. 2017 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 Jan. 2017 is calculated as

Inventory to Revenue=Average Inventory / Revenue
=1288.255 / 552.009
=2.33

* 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

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 local exchange's currency.

Hovnanian Enterprises Inc Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15Oct16
DaysInventory 300.07267.94272.08286.07323.41285.35246.02259.67298.78223.24

Hovnanian Enterprises Inc Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
DaysInventory 214.26343.25339.48313.74253.70300.28263.26230.29181.04248.32
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