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ShangPharma Corp (NYSE:SHP)
Days Inventory
11.36 (As of Sep. 2012)

ShangPharma Corp's average inventory for the three months ended in Sep. 2012 was \$2.9 Mil. ShangPharma Corp's cost of goods sold for the three months ended in Sep. 2012 was \$23.1 Mil. Hence, ShangPharma Corp's days inventory for the three months ended in Sep. 2012 was 11.36.

ShangPharma Corp's days inventory increased from Sep. 2011 (9.20) to Sep. 2012 (11.36). It might indicate that ShangPharma Corp's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). ShangPharma Corp's days sales of inventory (DSI) for the three months ended in Sep. 2012 was 8.23.

Inventory turnover measures how fast the company turns over its inventory within a year. ShangPharma Corp's inventory turnover for the three months ended in Sep. 2012 was 8.03.

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. ShangPharma Corp's inventory to revenue ratio for the three months ended in Sep. 2012 was 0.09.

Definition

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

ShangPharma Corp's Days Inventory for the fiscal year that ended in Dec. 2011 is calculated as

 Days Inventory (A: Dec. 2011 ) = Average Inventory / COGS * Days in Period = ( (Inventory (A: Dec. 2010 ) + Inventory (A: Dec. 2011 )) / 2 ) / COGS (A: Dec. 2011 ) * Days in Period = ( (1.259 + 2.842) / 2 ) / 75.503 * 365 = 2.0505 / 75.503 * 365 = 9.91

ShangPharma Corp's Days Inventory for the quarter that ended in Sep. 2012 is calculated as:

 Days Inventory (Q: Sep. 2012 ) = Average Inventory / COGS * Days in Period = ( (Inventory (Q: Jun. 2012 ) + Inventory (Q: Sep. 2012 )) / 2 ) / COGS (Q: Sep. 2012 ) * Days in Period = ( (2.752 + 3.002) / 2 ) / 23.101 * 365 / 4 = 2.877 / 23.101 * 365 / 4 = 11.36

* 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).

ShangPharma Corp's Days Sales of Inventory for the three months ended in Sep. 2012 is calculated as

 Days Sales of Inventory (DSI) = Average Inventory / Revenue * Days in Period = 2.877 / 31.885 * 365 / 4 = 8.23

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

ShangPharma Corp's Inventory Turnover for the three months ended in Sep. 2012 is calculated as

 Inventory Turnover = Cost of Goods Sold / Average Inventory = 23.101 / 2.877 = 8.03

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.

ShangPharma Corp's Inventory to Revenue for the three months ended in Sep. 2012 is calculated as

 Inventory to Revenue = Average Inventory / Revenue = 2.877 / 31.885 = 0.09

* 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.

ShangPharma Corp Annual Data

 Dec08 Dec09 Dec10 Dec11 DaysInventory 0.00 0.00 0.00 0.00 0.00 0.00 9.86 8.44 7.29 9.91

ShangPharma Corp Quarterly Data

 Dec09 Jun10 Sep10 Dec10 Mar11 Sep11 Dec11 Mar12 Jun12 Sep12 DaysInventory 7.83 0.00 7.03 7.20 8.30 9.20 11.23 12.24 11.26 11.36
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