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Li & Fung Ltd (OTCPK:LFUGF)
Days Inventory
7.44 (As of Jun. 2014)

Li & Fung Ltd's inventory for the six months ended in Jun. 2014 was $633 Mil. Li & Fung Ltd's cost of goods sold for the six months ended in Jun. 2014 was $7,742 Mil. Hence, Li & Fung Ltd's days inventory for the six months ended in Jun. 2014 was 7.44.

Li & Fung Ltd's days inventory declined from Jun. 2013 (13.11) to Jun. 2014 (7.44).

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 Jun. 2014 was 6.62.

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 Jun. 2014 was 12.22.

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 Jun. 2014 was 0.07.


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 Jun. 2014 is calculated as:

Days Inventory=Inventory/Cost of Goods Sold*Days in Period
=633.344/7741.923*91
=7.44

* 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 Jun. 2014 is calculated as

Days Sales of Inventory (DSI)=Inventory/Revenue*Days in Period
=633.344/8709.6*91
=6.62

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 Jun. 2014 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 Jun. 2014 is calculated as

Inventory to Revenue=Inventory / Revenue
=633.344 / 8709.6
=0.07

* 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DaysInventory 0.004.598.019.098.589.4120.4122.1819.7522.91

Li & Fung Ltd Semi-Annual Data

Dec09Jun10Dec10Jun11Dec11Jun12Dec12Jun13Dec13Jun14
DaysInventory 4.235.278.7811.859.9612.468.9913.1110.277.44
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