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

Spartech Corporation's average inventory for the three months ended in Oct. 2012 was $102 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 36.42.

Spartech Corporation's days inventory increased from Oct. 2011 (32.76) to Oct. 2012 (36.42). 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 32.26.

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 2.50.

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 0.35.


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 (A: Oct. 2011 )+Inventory (A: Oct. 2012 ))/ 2 )/Cost of Goods Sold*Days in Period
=( (91.186+105.099)/ 2 )/1037.991*365
=98.1425/1037.991*365
=34.51

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

Days Inventory
=( (Inventory (Q: Jul. 2012 )+Inventory (Q: Oct. 2012 ))/ 2 )/Cost of Goods Sold*Days in Period
=( (98.248+105.099)/ 2 )/254.067*91
=101.6735/254.067*91
=36.42

* 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)=Average Inventory/Revenue*Days in Period
=101.6735/286.804*91
=32.26

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

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=Average Inventory / Revenue
=101.6735 / 286.804
=0.35

* 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.

Spartech Corporation Annual Data

Oct03Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12
DaysInventory 43.2645.6238.3533.7033.7730.5135.9528.4731.0334.51

Spartech Corporation Quarterly Data

Jul10Oct10Jan11Apr11Jul11Oct11Jan12Apr12Jul12Oct12
DaysInventory 30.0631.4635.6933.8334.6332.7633.8735.5136.6036.42
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