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GuruFocus has detected 8 Warning Signs with Schlumberger Ltd $SLB.
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Schlumberger Ltd (NYSE:SLB)
Days Inventory
64.81 (As of Dec. 2016)

Schlumberger Ltd's average inventory for the three months ended in Dec. 2016 was $4,399 Mil. Schlumberger Ltd's cost of goods sold for the three months ended in Dec. 2016 was $6,193 Mil. Hence, Schlumberger Ltd's days inventory for the three months ended in Dec. 2016 was 64.81.

SLB' s Days Inventory Range Over the Past 10 Years
Min: 34.24   Max: 64.14
Current: 64.14

34.24
64.14

During the past 13 years, Schlumberger Ltd's highest Days Inventory was 64.14. The lowest was 34.24. And the median was 48.82.

SLB's Days Inventory is ranked lower than
56% of the 189 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 51.90 vs. SLB: 64.14 )

Schlumberger Ltd's days inventory increased from Dec. 2015 (57.88) to Dec. 2016 (64.81). It might indicate that Schlumberger Ltd's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Schlumberger Ltd's days sales of inventory (DSI) for the three months ended in Dec. 2016 was 56.10.

Inventory turnover measures how fast the company turns over its inventory within a year. Schlumberger Ltd's inventory turnover for the three months ended in Dec. 2016 was 1.41.

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. Schlumberger Ltd's inventory to revenue ratio for the three months ended in Dec. 2016 was 0.61.


Definition

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

Schlumberger Ltd's Days Inventory for the fiscal year that ended in Dec. 2016 is calculated as

Days Inventory (A: Dec. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Dec. 2015 ) + Inventory (A: Dec. 2016 )) / 2 ) / COGS (A: Dec. 2016 )*Days in Period
=( (3756 + 4225) / 2 ) / 24110*365
=3990.5 / 24110*365
=60.41

Schlumberger Ltd's Days Inventory for the quarter that ended in Dec. 2016 is calculated as:

Days Inventory (Q: Dec. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Sep. 2016 ) + Inventory (Q: Dec. 2016 )) / 2 ) / COGS (Q: Dec. 2016 )*Days in Period
=( (4572 + 4225) / 2 ) / 6193*365 / 4
=4398.5 / 6193*365 / 4
=64.81

* 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).

Schlumberger Ltd's Days Sales of Inventory for the three months ended in Dec. 2016 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=4398.5/7154*365 / 4
=56.10

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

Schlumberger Ltd's Inventory Turnover for the three months ended in Dec. 2016 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.

Schlumberger Ltd's Inventory to Revenue for the three months ended in Dec. 2016 is calculated as

* 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

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 local exchange's currency.

Schlumberger Ltd Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DaysInventory 34.0134.2440.0547.3753.8852.6448.4945.0554.0360.41

Schlumberger Ltd Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DaysInventory 44.6043.9352.3859.1259.1257.8861.5762.2371.1164.81
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