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Phillips 66 (NYSE:PSX)
Days Inventory
15.64 (As of Mar. 2014)

Phillips 66's inventory for the three months ended in Mar. 2014 was $5,908 Mil. Phillips 66's cost of goods sold for the three months ended in Mar. 2014 was $34,381 Mil. Hence, Phillips 66's days inventory for the three months ended in Mar. 2014 was 15.64.

Phillips 66's days inventory increased from Mar. 2013 (15.00) to Mar. 2014 (15.64). It might indicate that Phillips 66's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Phillips 66's days sales of inventory (DSI) for the three months ended in Mar. 2014 was 13.08.

Inventory turnover measures how fast the company turns over its inventory within a year. Phillips 66's inventory turnover for the three months ended in Mar. 2014 was 5.82.

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. Phillips 66's inventory to revenue ratio for the three months ended in Mar. 2014 was 0.14.


Definition

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

Phillips 66's Days Inventory for the fiscal year that ended in Dec. 2013 is calculated as

Days Inventory=Inventory/Cost of Goods Sold*Days in Period
=3354/148245*365
=8.26

Phillips 66's Days Inventory for the quarter that ended in Mar. 2014 is calculated as:

Days Inventory=Inventory/Cost of Goods Sold*Days in Period
=5908/34381*91
=15.64

* 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).

Phillips 66's Days Sales of Inventory for the three months ended in Mar. 2014 is calculated as

Days Sales of Inventory (DSI)=Inventory/Revenue*Days in Period
=5908/41099*91
=13.08

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

Phillips 66's Inventory Turnover for the three months ended in Mar. 2014 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.

Phillips 66's Inventory to Revenue for the three months ended in Mar. 2014 is calculated as

Inventory to Revenue=Inventory / Revenue
=5908 / 41099
=0.14

* 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.

Phillips 66 Annual Data

Dec09Dec10Dec11Dec12Dec13
DaysInventory 0.000.000.000.000.0015.0512.007.328.118.26

Phillips 66 Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DaysInventory 7.3411.3712.3814.448.3215.0012.2911.138.2615.64
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