Switch to:
NewMarket Corp (NYSE:NEU)
Days Inventory
85.14 (As of Sep. 2016)

NewMarket Corp's average inventory for the three months ended in Sep. 2016 was $316 Mil. NewMarket Corp's cost of goods sold for the three months ended in Sep. 2016 was $339 Mil. Hence, NewMarket Corp's days inventory for the three months ended in Sep. 2016 was 85.14.

NEU' s Days Inventory Range Over the Past 10 Years
Min: 55.29   Max: 88.45
Current: 88.45

55.29
88.45

During the past 13 years, NewMarket Corp's highest Days Inventory was 88.45. The lowest was 55.29. And the median was 67.06.

NEU's Days Inventory is ranked lower than
69% of the 1040 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 65.26 vs. NEU: 88.45 )

NewMarket Corp's days inventory increased from Sep. 2015 (84.27) to Sep. 2016 (85.14). It might indicate that NewMarket Corp's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). NewMarket Corp's days sales of inventory (DSI) for the three months ended in Sep. 2016 was 55.87.

Inventory turnover measures how fast the company turns over its inventory within a year. NewMarket Corp's inventory turnover for the three months ended in Sep. 2016 was 1.07.

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. NewMarket Corp's inventory to revenue ratio for the three months ended in Sep. 2016 was 0.61.


Definition

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

NewMarket Corp'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
=( (348.42 + 351.631) / 2 ) / 1461.774*365
=350.0255 / 1461.774*365
=87.40

NewMarket Corp's Days Inventory for the quarter that ended in Sep. 2016 is calculated as:

Days Inventory (Q: Sep. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Jun. 2016 ) + Inventory (Q: Sep. 2016 )) / 2 ) / COGS (Q: Sep. 2016 )*Days in Period
=( (303.475 + 328.523) / 2 ) / 338.689*365 / 4
=315.999 / 338.689*365 / 4
=85.14

* 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).

NewMarket Corp's Days Sales of Inventory for the three months ended in Sep. 2016 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=315.999/516.09*365 / 4
=55.87

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

NewMarket Corp's Inventory Turnover for the three months ended in Sep. 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.

NewMarket Corp's Inventory to Revenue for the three months ended in Sep. 2016 is calculated as

Inventory to Revenue=Average Inventory / Revenue
=315.999 / 516.09
=0.61

* 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.

NewMarket Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DaysInventory 61.6664.1955.2967.3966.3666.7372.6470.6971.6887.40

NewMarket Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DaysInventory 67.8571.2779.5183.6879.4984.2796.7789.3180.5685.14
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK