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Newport Corp (NAS:NEWP)
Days Inventory
127.46 (As of Dec. 2015)

Newport Corp's average inventory for the three months ended in Dec. 2015 was \$118.2 Mil. Newport Corp's cost of goods sold for the three months ended in Dec. 2015 was \$84.6 Mil. Hence, Newport Corp's days inventory for the three months ended in Dec. 2015 was 127.46.

Newport Corp's days inventory increased from Dec. 2014 (115.02) to Dec. 2015 (127.46). It might indicate that Newport Corp's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Newport Corp's days sales of inventory (DSI) for the three months ended in Dec. 2015 was 71.65.

Inventory turnover measures how fast the company turns over its inventory within a year. Newport Corp's inventory turnover for the three months ended in Dec. 2015 was 0.72.

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. Newport Corp's inventory to revenue ratio for the three months ended in Dec. 2015 was 0.79.

Definition

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

Newport 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 = ( (112.44 + 113.505) / 2 ) / 340.171 * 365 = 112.9725 / 340.171 * 365 = 121.22

Newport Corp's Days Inventory for the quarter that ended in Dec. 2015 is calculated as:

 Days Inventory (Q: Dec. 2015 ) = Average Inventory / COGS * Days in Period = ( (Inventory (Q: Sep. 2015 ) + Inventory (Q: Dec. 2015 )) / 2 ) / COGS (Q: Dec. 2015 ) * Days in Period = ( (122.845 + 113.505) / 2 ) / 84.606 * 365 / 4 = 118.175 / 84.606 * 365 / 4 = 127.46

* 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).

Newport Corp's Days Sales of Inventory for the three months ended in Dec. 2015 is calculated as

 Days Sales of Inventory (DSI) = Average Inventory / Revenue * Days in Period = 118.175 / 150.499 * 365 / 4 = 71.65

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

Newport Corp's Inventory Turnover for the three months ended in Dec. 2015 is calculated as

 Inventory Turnover = Cost of Goods Sold / Average Inventory = 84.606 / 118.175 = 0.72

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.

Newport Corp's Inventory to Revenue for the three months ended in Dec. 2015 is calculated as

 Inventory to Revenue = Average Inventory / Revenue = 118.175 / 150.499 = 0.79

* 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

Historical Data

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

Newport Corp Annual Data

 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 DaysInventory 121.12 146.81 141.46 153.51 115.96 118.04 120.86 120.09 117.79 121.22

Newport Corp Quarterly Data

 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 DaysInventory 122.99 107.79 116.91 118.75 127.39 115.02 123.41 133.74 132.94 127.46
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