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Nabors Industries Ltd (NYSE:NBR)
Days Inventory
40.85 (As of Jun. 2016)

Nabors Industries Ltd's average inventory for the three months ended in Jun. 2016 was $153 Mil. Nabors Industries Ltd's cost of goods sold for the three months ended in Jun. 2016 was $341 Mil. Hence, Nabors Industries Ltd's days inventory for the three months ended in Jun. 2016 was 40.85.

NBR' s Days Inventory Range Over the Past 10 Years
Min: 11.03   Max: 35.87
Current: 35.87

11.03
35.87

During the past 13 years, Nabors Industries Ltd's highest Days Inventory was 35.87. The lowest was 11.03. And the median was 20.41.

NBR's Days Inventory is ranked higher than
51% of the 49 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 35.87 vs. NBR: 35.87 )

Nabors Industries Ltd's days inventory increased from Jun. 2015 (34.95) to Jun. 2016 (40.85). It might indicate that Nabors Industries Ltd's sales slowed down.

Warning Sign:

If a company builds up inventory, it may mean it is having difficulties selling its goods.

Inventory can be measured by Days Sales of Inventory (DSI). Nabors Industries Ltd's days sales of inventory (DSI) for the three months ended in Jun. 2016 was 26.96.

Inventory turnover measures how fast the company turns over its inventory within a year. Nabors Industries Ltd's inventory turnover for the three months ended in Jun. 2016 was 2.23.

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. Nabors Industries Ltd's inventory to revenue ratio for the three months ended in Jun. 2016 was 0.30.


Definition

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

Nabors Industries 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
=( (230.067 + 153.824) / 2 ) / 2371.436*365
=191.9455 / 2371.436*365
=29.54

Nabors Industries Ltd's Days Inventory for the quarter that ended in Jun. 2016 is calculated as:

Days Inventory (Q: Jun. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Mar. 2016 ) + Inventory (Q: Jun. 2016 )) / 2 ) / COGS (Q: Jun. 2016 )*Days in Period
=( (153.837 + 151.753) / 2 ) / 341.279*365 / 4
=152.795 / 341.279*365 / 4
=40.85

* 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).

Nabors Industries Ltd's Days Sales of Inventory for the three months ended in Jun. 2016 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=152.795/517.092*365 / 4
=26.96

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

Nabors Industries Ltd's Inventory Turnover for the three months ended in Jun. 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.

Nabors Industries Ltd's Inventory to Revenue for the three months ended in Jun. 2016 is calculated as

Inventory to Revenue=Average Inventory / Revenue
=152.795 / 517.092
=0.30

* 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.

Nabors Industries Ltd Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DaysInventory 11.0315.4716.6622.8819.7421.0721.9021.1317.8229.54

Nabors Industries Ltd Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DaysInventory 17.3717.5717.7318.0620.8634.9531.7933.9338.4640.85
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