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Rio Tinto PLC (NYSE:RIO)
Days Inventory
30.63 (As of Jun. 2014)

Rio Tinto PLC's average inventory for the six months ended in Jun. 2014 was $5,687 Mil. Rio Tinto PLC's cost of goods sold for the six months ended in Jun. 2014 was $16,893 Mil. Hence, Rio Tinto PLC's days inventory for the six months ended in Jun. 2014 was 30.63.

Rio Tinto PLC's days inventory declined from Jun. 2013 (31.08) to Jun. 2014 (30.63).

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 Jun. 2014 was 21.26.

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 Jun. 2014 was 2.97.

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 Jun. 2014 was 0.23.


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 (A: Dec. 2012 )+Inventory (A: Dec. 2013 ))/ 2 )/Cost of Goods Sold*Days in Period
=( (6136+5737)/ 2 )/36104*365
=5936.5/36104*365
=60.02

Rio Tinto PLC's Days Inventory for the quarter that ended in Jun. 2014 is calculated as:

Days Inventory
=( (Inventory (Q: Dec. 2013 )+Inventory (Q: Jun. 2014 ))/ 2 )/Cost of Goods Sold*Days in Period
=( (5737+5636)/ 2 )/16893*91
=5686.5/16893*91
=30.63

* 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 Jun. 2014 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=5686.5/24337*91
=21.26

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 Jun. 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.

Rio Tinto PLC's Inventory to Revenue for the six months ended in Jun. 2014 is calculated as

* 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.

Rio Tinto PLC Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DaysInventory 103.8088.57118.80221.9253.3556.6448.0150.6555.6460.02

Rio Tinto PLC Semi-Annual Data

Dec09Jun10Dec10Jun11Dec11Jun12Dec12Jun13Dec13Jun14
DaysInventory 26.4926.2722.1626.1125.5627.6527.0831.0830.2130.63
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