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Spartech Corporation (NYSE:SEH)
Days Inventory
37.64 (As of Oct. 2012)

Spartech Corporation's inventory for the three months ended in Oct. 2012 was \$105 Mil. Spartech Corporation's cost of goods sold for the three months ended in Oct. 2012 was \$254 Mil. Hence, Spartech Corporation's days inventory for the three months ended in Oct. 2012 was 37.64.

Spartech Corporation's days inventory increased from Oct. 2011 (30.96) to Oct. 2012 (37.64). It might indicate that Spartech Corporation's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Spartech Corporation's days sales of inventory (DSI) for the three months ended in Oct. 2012 was 33.35.

Inventory turnover measures how fast the company turns over its inventory within a year. Spartech Corporation's inventory turnover for the three months ended in Oct. 2012 was 2.42.

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. Spartech Corporation's inventory to revenue ratio for the three months ended in Oct. 2012 was 0.37.

Definition

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

Spartech Corporation's Days Inventory for the fiscal year that ended in Oct. 2012 is calculated as

 Days Inventory = Inventory / Cost of Goods Sold * Days in Period = 105.099 / 1037.991 * 365 = 36.96

Spartech Corporation's Days Inventory for the quarter that ended in Oct. 2012 is calculated as:

 Days Inventory = Inventory / Cost of Goods Sold * Days in Period = 105.099 / 254.067 * 91 = 37.64

* 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).

Spartech Corporation's Days Sales of Inventory for the three months ended in Oct. 2012 is calculated as

 Days Sales of Inventory (DSI) = Inventory / Revenue * Days in Period = 105.099 / 286.804 * 91 = 33.35

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

Spartech Corporation's Inventory Turnover for the three months ended in Oct. 2012 is calculated as

 Inventory Turnover = Cost of Goods Sold / Average Inventory = 254.067 / 105.099 = 2.42

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.

Spartech Corporation's Inventory to Revenue for the three months ended in Oct. 2012 is calculated as

 Inventory to Revenue = Inventory / Revenue = 105.099 / 286.804 = 0.37

* 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.

Spartech Corporation Annual Data

 Oct03 Oct04 Oct05 Oct06 Oct07 Oct08 Oct09 Oct10 Oct11 Oct12 DaysInventory 44.25 53.61 35.03 34.11 32.88 27.73 28.35 31.81 33.12 36.96

Spartech Corporation Quarterly Data

 Jul10 Oct10 Jan11 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 DaysInventory 31.60 30.65 37.87 35.58 34.96 30.96 35.84 36.31 35.02 37.64
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