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Li & Fung Ltd (OTCPK:LFUGF)
Days Inventory
10.27 (As of Dec. 2013)

Li & Fung Ltd's inventory for the six months ended in Dec. 2013 was \$1,100 Mil. Li & Fung Ltd's cost of goods sold for the six months ended in Dec. 2013 was \$9,747 Mil. Hence, Li & Fung Ltd's days inventory for the six months ended in Dec. 2013 was 10.27.

Li & Fung Ltd's days inventory increased from Dec. 2012 (8.99) to Dec. 2013 (10.27). It might indicate that Li & Fung Ltd's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Li & Fung Ltd's days sales of inventory (DSI) for the six months ended in Dec. 2013 was 8.62.

Inventory turnover measures how fast the company turns over its inventory within a year. Li & Fung Ltd's inventory turnover for the six months ended in Dec. 2013 was 8.86.

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. Li & Fung Ltd's inventory to revenue ratio for the six months ended in Dec. 2013 was 0.09.

Definition

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

Li & Fung Ltd'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 = 1100.486 / 17530.953 * 365 = 22.91

Li & Fung Ltd's Days Inventory for the quarter that ended in Dec. 2013 is calculated as:

 Days Inventory = Inventory / Cost of Goods Sold * Days in Period = 1100.486 / 9746.761 * 91 = 10.27

* 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).

Li & Fung Ltd's Days Sales of Inventory for the six months ended in Dec. 2013 is calculated as

 Days Sales of Inventory (DSI) = Inventory / Revenue * Days in Period = 1100.486 / 11616.663 * 91 = 8.62

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

Li & Fung Ltd's Inventory Turnover for the six months ended in Dec. 2013 is calculated as

 Inventory Turnover = Cost of Goods Sold / Average Inventory = 9746.761 / 1100.486 = 8.86

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.

Li & Fung Ltd's Inventory to Revenue for the six months ended in Dec. 2013 is calculated as

 Inventory to Revenue = Inventory / Revenue = 1100.486 / 11616.663 = 0.09

* 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

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Li & Fung Ltd Annual Data

 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 DaysInventory 3.91 4.59 8.01 9.09 8.58 9.41 20.41 22.18 19.75 22.91

Li & Fung Ltd Semi-Annual Data

 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 DaysInventory 4.81 4.23 5.28 8.78 11.85 9.96 12.46 8.99 13.11 10.27
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