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GuruFocus has detected 3 Warning Signs with TE Connectivity Ltd $TEL.
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TE Connectivity Ltd (NYSE:TEL)
Days Inventory
73.80 (As of Dec. 2016)

TE Connectivity Ltd's average inventory for the three months ended in Dec. 2016 was $1,616 Mil. TE Connectivity Ltd's cost of goods sold for the three months ended in Dec. 2016 was $1,998 Mil. Hence, TE Connectivity Ltd's days inventory for the three months ended in Dec. 2016 was 73.80.

TEL' s Days Inventory Range Over the Past 10 Years
Min: 66.42   Max: 84.96
Current: 71.79

66.42
84.96

During the past 13 years, TE Connectivity Ltd's highest Days Inventory was 84.96. The lowest was 66.42. And the median was 72.13.

TEL's Days Inventory is ranked higher than
50% of the 2184 Companies
in the Global Electronic Components industry.

( Industry Median: 72.14 vs. TEL: 71.79 )

TE Connectivity Ltd's days inventory declined from Dec. 2015 (80.11) to Dec. 2016 (73.80).

Inventory can be measured by Days Sales of Inventory (DSI). TE Connectivity Ltd's days sales of inventory (DSI) for the three months ended in Dec. 2016 was 48.14.

Inventory turnover measures how fast the company turns over its inventory within a year. TE Connectivity Ltd's inventory turnover for the three months ended in Dec. 2016 was 1.24.

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. TE Connectivity Ltd's inventory to revenue ratio for the three months ended in Dec. 2016 was 0.53.


Definition

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

TE Connectivity Ltd's Days Inventory for the fiscal year that ended in Sep. 2016 is calculated as

Days Inventory (A: Sep. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Sep. 2015 ) + Inventory (A: Sep. 2016 )) / 2 ) / COGS (A: Sep. 2016 )*Days in Period
=( (1615 + 1596) / 2 ) / 8205*365
=1605.5 / 8205*365
=71.42

TE Connectivity 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
=( (1596 + 1636) / 2 ) / 1998*365 / 4
=1616 / 1998*365 / 4
=73.80

* 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).

TE Connectivity 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
=1616/3063*365 / 4
=48.14

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

TE Connectivity 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.

TE Connectivity 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.

TE Connectivity Ltd Annual Data

Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15Sep16
DaysInventory 71.0475.2584.9666.4266.4472.8384.1974.6169.9971.42

TE Connectivity Ltd Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DaysInventory 73.5877.6081.4674.9675.4180.1176.4670.5465.6573.80
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