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GuruFocus has detected 5 Warning Signs with Mead Johnson Nutrition Co $MJN.
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Mead Johnson Nutrition Co (NYSE:MJN)
Days Inventory
132.68 (As of Dec. 2016)

Mead Johnson Nutrition Co's average inventory for the three months ended in Dec. 2016 was $475 Mil. Mead Johnson Nutrition Co's cost of goods sold for the three months ended in Dec. 2016 was $327 Mil. Hence, Mead Johnson Nutrition Co's days inventory for the three months ended in Dec. 2016 was 132.68.

MJN' s Days Inventory Range Over the Past 10 Years
Min: 105.82   Max: 130.47
Current: 129.95

105.82
130.47

During the past 13 years, Mead Johnson Nutrition Co's highest Days Inventory was 130.47. The lowest was 105.82. And the median was 117.42.

MJN's Days Inventory is ranked lower than
80% of the 1345 Companies
in the Global Packaged Foods industry.

( Industry Median: 64.79 vs. MJN: 129.95 )

Mead Johnson Nutrition Co's days inventory increased from Dec. 2015 (127.68) to Dec. 2016 (132.68). It might indicate that Mead Johnson Nutrition Co's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Mead Johnson Nutrition Co's days sales of inventory (DSI) for the three months ended in Dec. 2016 was 48.05.

Inventory turnover measures how fast the company turns over its inventory within a year. Mead Johnson Nutrition Co's inventory turnover for the three months ended in Dec. 2016 was 0.69.

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. Mead Johnson Nutrition Co's inventory to revenue ratio for the three months ended in Dec. 2016 was 0.53.


Definition

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

Mead Johnson Nutrition Co's Days Inventory for the fiscal year that ended in Dec. 2016 is calculated as

Days Inventory (A: Dec. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Dec. 2015 ) + Inventory (A: Dec. 2016 )) / 2 ) / COGS (A: Dec. 2016 )*Days in Period
=( (484.9 + 473.5) / 2 ) / 1341*365
=479.2 / 1341*365
=130.43

Mead Johnson Nutrition Co's Days Inventory for the quarter that ended in Dec. 2016 is calculated as:

Days Inventory (Q: Dec. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Sep. 2016 ) + Inventory (Q: Dec. 2016 )) / 2 ) / COGS (Q: Dec. 2016 )*Days in Period
=( (476 + 473.5) / 2 ) / 326.5*365 / 4
=474.75 / 326.5*365 / 4
=132.68

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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).

Mead Johnson Nutrition Co's Days Sales of Inventory for the three months ended in Dec. 2016 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=474.75/901.6*365 / 4
=48.05

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

Mead Johnson Nutrition Co's Inventory Turnover for the three months ended in Dec. 2016 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.

Mead Johnson Nutrition Co's Inventory to Revenue for the three months ended in Dec. 2016 is calculated as

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Mead Johnson Nutrition Co Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DaysInventory 106.90110.79124.36105.82119.44117.82115.90117.01130.47130.43

Mead Johnson Nutrition Co Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DaysInventory 118.13118.21128.17143.79143.65127.68127.56130.45128.77132.68
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