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Rio Tinto PLC (NYSE:RIO)
Days Inventory
28.98 (As of Dec. 2013)

Rio Tinto PLC's inventory for the six months ended in Dec. 2013 was \$5,737 Mil. Rio Tinto PLC's cost of goods sold for the six months ended in Dec. 2013 was \$18,012 Mil. Hence, Rio Tinto PLC's days inventory for the six months ended in Dec. 2013 was 28.98.

Rio Tinto PLC's days inventory declined from Dec. 2012 (29.54) to Dec. 2013 (28.98).

Inventory can be measured by Days Sales of Inventory (DSI). Rio Tinto PLC's days sales of inventory (DSI) for the six months ended in Dec. 2013 was 19.58.

Inventory turnover measures how fast the company turns over its inventory within a year. Rio Tinto PLC's inventory turnover for the six months ended in Dec. 2013 was 3.14.

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. Rio Tinto PLC's inventory to revenue ratio for the six months ended in Dec. 2013 was 0.22.

Definition

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

Rio Tinto PLC'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 = 5737 / 36104 * 365 = 58.00

Rio Tinto PLC's Days Inventory for the quarter that ended in Dec. 2013 is calculated as:

 Days Inventory = Inventory / Cost of Goods Sold * Days in Period = 5737 / 18012 * 91 = 28.98

* 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).

Rio Tinto PLC's Days Sales of Inventory for the six months ended in Dec. 2013 is calculated as

 Days Sales of Inventory (DSI) = Inventory / Revenue * Days in Period = 5737 / 26660 * 91 = 19.58

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

Rio Tinto PLC's Inventory Turnover for the six months ended in Dec. 2013 is calculated as

 Inventory Turnover = Cost of Goods Sold / Average Inventory = 18012 / 5737 = 3.14

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.

Rio Tinto PLC's Inventory to Revenue for the six months ended in Dec. 2013 is calculated as

 Inventory to Revenue = Inventory / Revenue = 5737 / 26660 = 0.22

* 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

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Rio Tinto PLC Annual Data

 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 DaysInventory 108.49 90.70 131.54 301.81 54.37 52.77 49.23 55.91 61.99 58.00

Rio Tinto PLC Semi-Annual Data

 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 DaysInventory 31.28 24.95 27.29 22.75 27.42 26.94 28.28 29.54 31.29 28.98
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