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HP Inc (NYSE:HPQ)
Days Inventory
31.07 (As of Oct. 2015)

HP Inc's average inventory for the three months ended in Oct. 2015 was $6,593 Mil. HP Inc's cost of goods sold for the three months ended in Oct. 2015 was $19,363 Mil. Hence, HP Inc's days inventory for the three months ended in Oct. 2015 was 31.07.

HPQ' s Days Inventory Range Over the Past 10 Years
Min: 23.92   Max: 38.45
Current: 30.09

23.92
38.45

During the past 13 years, HP Inc's highest Days Inventory was 38.45. The lowest was 23.92. And the median was 28.24.

HPQ's Days Inventory is ranked higher than
87% of the 2146 Companies
in the Global Computer Systems industry.

( Industry Median: 73.25 vs. HPQ: 30.09 )

HP Inc's days inventory increased from Oct. 2014 (26.97) to Oct. 2015 (31.07). It might indicate that HP Inc's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). HP Inc's days sales of inventory (DSI) for the three months ended in Oct. 2015 was 23.39.

Inventory turnover measures how fast the company turns over its inventory within a year. HP Inc's inventory turnover for the three months ended in Oct. 2015 was 2.94.

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. HP Inc's inventory to revenue ratio for the three months ended in Oct. 2015 was 0.26.


Definition

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

HP 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
=( (6415 + 6485) / 2 ) / 78596*365
=6450 / 78596*365
=29.95

HP Inc's Days Inventory for the quarter that ended in Oct. 2015 is calculated as:

Days Inventory (Q: Oct. 2015 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Jul. 2015 ) + Inventory (Q: Oct. 2015 )) / 2 ) / COGS (Q: Oct. 2015 )*Days in Period
=( (6700 + 6485) / 2 ) / 19363*365 / 4
=6592.5 / 19363*365 / 4
=31.07

* 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).

HP Inc's Days Sales of Inventory for the three months ended in Oct. 2015 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=6592.5/25714*365 / 4
=23.39

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

HP Inc's Inventory Turnover for the three months ended in Oct. 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.

HP Inc's Inventory to Revenue for the three months ended in Oct. 2015 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.

HP Inc Annual Data

Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15
DaysInventory 38.4536.7632.3729.2123.9526.1427.2726.1226.8129.95

HP Inc Quarterly Data

Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15
DaysInventory 27.4325.5925.2926.1026.3026.9728.8130.1930.5331.07
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