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Li & Fung Ltd (OTCPK:LFUGF)
Days Inventory
11.89 (As of Dec. 2015)

Li & Fung Ltd's average inventory for the six months ended in Dec. 2015 was $587 Mil. Li & Fung Ltd's cost of goods sold for the six months ended in Dec. 2015 was $9,007 Mil. Hence, Li & Fung Ltd's days inventory for the six months ended in Dec. 2015 was 11.89.

LFUGF' s Days Inventory Range Over the Past 10 Years
Min: 5.89   Max: 21.23
Current: 12.69

5.89
21.23

During the past 13 years, Li & Fung Ltd's highest Days Inventory was 21.23. The lowest was 5.89. And the median was 13.31.

LFUGF's Days Inventory is ranked higher than
57% of the 432 Companies
in the Global Business Services industry.

( Industry Median: 18.54 vs. LFUGF: 12.69 )

Li & Fung Ltd's days inventory increased from Dec. 2014 (11.68) to Dec. 2015 (11.89). 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. 2015 was 10.49.

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. 2015 was 15.35.

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. 2015 was 0.06.


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. 2015 is calculated as

Days Inventory (A: Dec. 2015 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Dec. 2014 ) + Inventory (A: Dec. 2015 )) / 2 ) / COGS (A: Dec. 2015 )*Days in Period
=( (565.291 + 566.002) / 2 ) / 16671.655*365
=565.6465 / 16671.655*365
=12.38

Li & Fung Ltd's Days Inventory for the quarter that ended in Dec. 2015 is calculated as:

Days Inventory (Q: Dec. 2015 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Jun. 2015 ) + Inventory (Q: Dec. 2015 )) / 2 ) / COGS (Q: Dec. 2015 )*Days in Period
=( (607.675 + 566.002) / 2 ) / 9006.979*365 / 2
=586.8385 / 9006.979*365 / 2
=11.89

* 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. 2015 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=586.8385/10205.224*365 / 2
=10.49

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. 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.

Li & Fung Ltd's Inventory to Revenue for the six months ended in Dec. 2015 is calculated as

Inventory to Revenue=Average Inventory / Revenue
=586.8385 / 10205.224
=0.06

* 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.

Li & Fung Ltd Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DaysInventory 5.907.498.069.3114.2519.3220.7721.2317.7712.38

Li & Fung Ltd Semi-Annual Data

Jun11Dec11Jun12Dec12Jun13Dec13Jun14Dec14Jun15Dec15
DaysInventory 21.1319.5124.5419.3325.0321.8120.4411.6813.9611.89
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