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Smith & Wesson Holding Corporation (NAS:SWHC)
Days Inventory
90.56 (As of Jan. 2014)

Smith & Wesson Holding Corporation's inventory for the three months ended in Jan. 2014 was $86.8 Mil. Smith & Wesson Holding Corporation's cost of goods sold for the three months ended in Jan. 2014 was $87.2 Mil. Hence, Smith & Wesson Holding Corporation's days inventory for the three months ended in Jan. 2014 was 90.56.

Smith & Wesson Holding Corporation's days inventory increased from Jan. 2013 (72.97) to Jan. 2014 (90.56). It might indicate that Smith & Wesson Holding Corporation's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Smith & Wesson Holding Corporation's days sales of inventory (DSI) for the three months ended in Jan. 2014 was 54.15.

Inventory turnover measures how fast the company turns over its inventory within a year. Smith & Wesson Holding Corporation's inventory turnover for the three months ended in Jan. 2014 was 1.00.

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. Smith & Wesson Holding Corporation's inventory to revenue ratio for the three months ended in Jan. 2014 was 0.60.


Definition

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

Smith & Wesson Holding Corporation's Days Inventory for the fiscal year that ended in Apr. 2013 is calculated as

Days Inventory=Inventory/Cost of Goods Sold*Days in Period
=62.998/369.111*365
=62.30

Smith & Wesson Holding Corporation's Days Inventory for the quarter that ended in Jan. 2014 is calculated as:

Days Inventory=Inventory/Cost of Goods Sold*Days in Period
=86.807/87.23*91
=90.56

* 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).

Smith & Wesson Holding Corporation's Days Sales of Inventory for the three months ended in Jan. 2014 is calculated as

Days Sales of Inventory (DSI)=Inventory/Revenue*Days in Period
=86.807/145.881*91
=54.15

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

Smith & Wesson Holding Corporation's Inventory Turnover for the three months ended in Jan. 2014 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.

Smith & Wesson Holding Corporation's Inventory to Revenue for the three months ended in Jan. 2014 is calculated as

Inventory to Revenue=Inventory / Revenue
=86.807 / 145.881
=0.60

* 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.

Smith & Wesson Holding Corporation Annual Data

Apr04Apr05Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13
DaysInventory 72.5985.5263.1372.9584.5764.0567.3879.4771.0762.30

Smith & Wesson Holding Corporation Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
DaysInventory 79.6980.3660.6467.4567.4972.9752.1458.5785.3090.56
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