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Transocean Ltd (NYSE:RIG)
Days Inventory
133.49 (As of Sep. 2016)

Transocean Ltd's average inventory for the three months ended in Sep. 2016 was $591 Mil. Transocean Ltd's cost of goods sold for the three months ended in Sep. 2016 was $404 Mil. Hence, Transocean Ltd's days inventory for the three months ended in Sep. 2016 was 133.49.

RIG' s Days Inventory Range Over the Past 10 Years
Min: 26.07   Max: 96.94
Current: 96.94

26.07
96.94

During the past 13 years, Transocean Ltd's highest Days Inventory was 96.94. The lowest was 26.07. And the median was 33.92.

RIG's Days Inventory is ranked lower than
80% of the 45 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 40.56 vs. RIG: 96.94 )

Transocean Ltd's days inventory increased from Sep. 2015 (74.50) to Sep. 2016 (133.49). It might indicate that Transocean Ltd's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Transocean Ltd's days sales of inventory (DSI) for the three months ended in Sep. 2016 was 59.72.

Inventory turnover measures how fast the company turns over its inventory within a year. Transocean Ltd's inventory turnover for the three months ended in Sep. 2016 was 0.68.

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. Transocean Ltd's inventory to revenue ratio for the three months ended in Sep. 2016 was 0.65.


Definition

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

Transocean 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
=( (818 + 635) / 2 ) / 2955*365
=726.5 / 2955*365
=89.74

Transocean Ltd'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
=( (597 + 585) / 2 ) / 404*365 / 4
=591 / 404*365 / 4
=133.49

* 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).

Transocean Ltd'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
=591/903*365 / 4
=59.72

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

Transocean Ltd'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.

Transocean Ltd's Inventory to Revenue for the three months ended in Sep. 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.

Transocean Ltd Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DaysInventory 26.7632.3526.0731.7442.2230.8135.4844.1955.5489.74

Transocean Ltd Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DaysInventory 59.6557.2257.5768.40358.5274.5076.4886.45111.51133.49
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