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Sycamore Networks Inc (OTCPK:SCMR)
Days Inventory
204.22 (As of Jan. 2013)

Sycamore Networks Inc's average inventory for the three months ended in Jan. 2013 was \$9.00 Mil. Sycamore Networks Inc's cost of goods sold for the three months ended in Jan. 2013 was \$4.02 Mil. Hence, Sycamore Networks Inc's days inventory for the three months ended in Jan. 2013 was 204.22.

Sycamore Networks Inc's days inventory increased from Jan. 2012 (161.74) to Jan. 2013 (204.22). It might indicate that Sycamore Networks Inc's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Sycamore Networks Inc's days sales of inventory (DSI) for the three months ended in Jan. 2013 was 86.71.

Inventory turnover measures how fast the company turns over its inventory within a year. Sycamore Networks Inc's inventory turnover for the three months ended in Jan. 2013 was 0.45.

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. Sycamore Networks Inc's inventory to revenue ratio for the three months ended in Jan. 2013 was 0.95.

Definition

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

Sycamore Networks Inc's Days Inventory for the fiscal year that ended in Jul. 2012 is calculated as

 Days Inventory (A: Jul. 2012 ) = Average Inventory / COGS * Days in Period = ( (Inventory (A: Jul. 2011 ) + Inventory (A: Jul. 2012 )) / 2 ) / COGS (A: Jul. 2012 ) * Days in Period = ( (11.537 + 8.469) / 2 ) / 24.331 * 365 = 10.003 / 24.331 * 365 = 150.06

Sycamore Networks Inc's Days Inventory for the quarter that ended in Jan. 2013 is calculated as:

 Days Inventory (Q: Jan. 2013 ) = Average Inventory / COGS * Days in Period = ( (Inventory (Q: Oct. 2012 ) + Inventory (Q: Jan. 2013 )) / 2 ) / COGS (Q: Jan. 2013 ) * Days in Period = ( (8.836 + 9.162) / 2 ) / 4.021 * 365 / 4 = 8.999 / 4.021 * 365 / 4 = 204.22

* 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).

Sycamore Networks Inc's Days Sales of Inventory for the three months ended in Jan. 2013 is calculated as

 Days Sales of Inventory (DSI) = Average Inventory / Revenue * Days in Period = 8.999 / 9.47 * 365 / 4 = 86.71

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

Sycamore Networks Inc's Inventory Turnover for the three months ended in Jan. 2013 is calculated as

 Inventory Turnover = Cost of Goods Sold / Average Inventory = 4.021 / 8.999 = 0.45

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.

Sycamore Networks Inc's Inventory to Revenue for the three months ended in Jan. 2013 is calculated as

 Inventory to Revenue = Average Inventory / Revenue = 8.999 / 9.47 = 0.95

* 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.

Sycamore Networks Inc Annual Data

 Jul03 Jul04 Jul05 Jul06 Jul07 Jul08 Jul09 Jul10 Jul11 Jul12 DaysInventory 93.52 55.14 51.63 47.59 57.37 132.62 188.85 160.56 184.14 150.06

Sycamore Networks Inc Quarterly Data

 Oct10 Jan11 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 DaysInventory 144.14 194.96 214.52 188.09 154.67 161.74 158.00 113.03 161.03 204.22
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