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Medtronic PLC (NYSE:MDT)
Days Inventory
151.60 (As of Jan. 2015)

Medtronic PLC's average inventory for the three months ended in Jan. 2015 was $1,874 Mil. Medtronic PLC's cost of goods sold for the three months ended in Jan. 2015 was $1,128 Mil. Hence, Medtronic PLC's days inventory for the three months ended in Jan. 2015 was 151.60.

Medtronic PLC's days inventory declined from Jan. 2014 (156.73) to Jan. 2015 (151.60).

Inventory can be measured by Days Sales of Inventory (DSI). Medtronic PLC's days sales of inventory (DSI) for the three months ended in Jan. 2015 was 39.60.

Inventory turnover measures how fast the company turns over its inventory within a year. Medtronic PLC's inventory turnover for the three months ended in Jan. 2015 was 0.60.

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. Medtronic PLC's inventory to revenue ratio for the three months ended in Jan. 2015 was 0.43.


Definition

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

Medtronic PLC's Days Inventory for the fiscal year that ended in Apr. 2014 is calculated as

Days Inventory (A: Apr. 2014 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Apr. 2013 ) + Inventory (A: Apr. 2014 )) / 2 ) / COGS (A: Apr. 2014 )*Days in Period
=( (1712 + 1725) / 2 ) / 4333*365
=1718.5 / 4333*365
=144.76

Medtronic PLC's Days Inventory for the quarter that ended in Jan. 2015 is calculated as:

Days Inventory (Q: Jan. 2015 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Oct. 2014 ) + Inventory (Q: Jan. 2015 )) / 2 ) / COGS (Q: Jan. 2015 )*Days in Period
=( (1873 + 1875) / 2 ) / 1128*365 / 4
=1874 / 1128*365 / 4
=151.60

* 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).

Medtronic PLC's Days Sales of Inventory for the three months ended in Jan. 2015 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=1874/4318*365 / 4
=39.60

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

Medtronic PLC's Inventory Turnover for the three months ended in Jan. 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.

Medtronic PLC's Inventory to Revenue for the three months ended in Jan. 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.

Medtronic PLC Annual Data

Apr05Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14
DaysInventory 138.76139.97137.80132.14140.38139.17156.65164.01155.34144.76

Medtronic PLC Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
DaysInventory 166.89172.00144.88155.80150.81156.73136.64147.03148.18151.60
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