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GuruFocus has detected 4 Warning Signs with Trimble Inc $TRMB.
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Trimble Inc (NAS:TRMB)
Days Inventory
74.13 (As of Dec. 2016)

Trimble Inc's average inventory for the three months ended in Dec. 2016 was $222 Mil. Trimble Inc's cost of goods sold for the three months ended in Dec. 2016 was $273 Mil. Hence, Trimble Inc's days inventory for the three months ended in Dec. 2016 was 74.13.

TRMB' s Days Inventory Range Over the Past 10 Years
Min: 76.54   Max: 96.54
Current: 78.01

76.54
96.54

During the past 13 years, Trimble Inc's highest Days Inventory was 96.54. The lowest was 76.54. And the median was 87.37.

TRMB's Days Inventory is ranked lower than
56% of the 1953 Companies
in the Global Scientific & Technical Instruments industry.

( Industry Median: 71.35 vs. TRMB: 78.01 )

Trimble Inc's days inventory declined from Dec. 2015 (91.13) to Dec. 2016 (74.13).

Inventory can be measured by Days Sales of Inventory (DSI). Trimble Inc's days sales of inventory (DSI) for the three months ended in Dec. 2016 was 34.53.

Inventory turnover measures how fast the company turns over its inventory within a year. Trimble Inc's inventory turnover for the three months ended in Dec. 2016 was 1.23.

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. Trimble Inc's inventory to revenue ratio for the three months ended in Dec. 2016 was 0.38.


Definition

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

Trimble Inc'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
=( (261.1 + 218.8) / 2 ) / 1124.2*365
=239.95 / 1124.2*365
=77.91

Trimble Inc'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
=( (224.3 + 218.8) / 2 ) / 272.7*365 / 4
=221.55 / 272.7*365 / 4
=74.13

* 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).

Trimble Inc'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
=221.55/585.5*365 / 4
=34.53

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

Trimble Inc'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.

Trimble Inc'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.

Trimble Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DaysInventory 76.5481.5596.5494.8195.2186.7783.2987.9690.4377.91

Trimble Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DaysInventory 94.0493.5291.8090.1295.3291.1383.4677.1677.2974.13
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