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The Hershey Company (NYSE:HSY)
Days Inventory
54.62 (As of Dec. 2013)

The Hershey Company's inventory for the three months ended in Dec. 2013 was $660 Mil. The Hershey Company's cost of goods sold for the three months ended in Dec. 2013 was $1,099 Mil. Hence, The Hershey Company's days inventory for the three months ended in Dec. 2013 was 54.62.

The Hershey Company's days inventory declined from Dec. 2012 (57.87) to Dec. 2013 (54.62).

Inventory can be measured by Days Sales of Inventory (DSI). The Hershey Company's days sales of inventory (DSI) for the three months ended in Dec. 2013 was 30.68.

Inventory turnover measures how fast the company turns over its inventory within a year. The Hershey Company's inventory turnover for the three months ended in Dec. 2013 was 1.67.

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. The Hershey Company's inventory to revenue ratio for the three months ended in Dec. 2013 was 0.34.


Definition

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

The Hershey Company's Days Inventory for the fiscal year that ended in Dec. 2013 is calculated as

Days Inventory=Inventory/Cost of Goods Sold*Days in Period
=659.541/3865.231*365
=62.28

The Hershey Company's Days Inventory for the quarter that ended in Dec. 2013 is calculated as:

Days Inventory=Inventory/Cost of Goods Sold*Days in Period
=659.541/1098.867*91
=54.62

* 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).

The Hershey Company's Days Sales of Inventory for the three months ended in Dec. 2013 is calculated as

Days Sales of Inventory (DSI)=Inventory/Revenue*Days in Period
=659.541/1956.253*91
=30.68

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

The Hershey Company's Inventory Turnover for the three months ended in Dec. 2013 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.

The Hershey Company's Inventory to Revenue for the three months ended in Dec. 2013 is calculated as

Inventory to Revenue=Inventory / Revenue
=659.541 / 1956.253
=0.34

* 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.

The Hershey Company Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DaysInventory 76.0978.3876.9766.0864.0858.4559.8266.7461.0862.28

The Hershey Company Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DaysInventory 63.0863.1059.7890.5365.8557.8758.3089.7469.5254.62
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