Switch to:
Tata Motors Ltd (NYSE:TTM)
Days Inventory
41.95 (As of Sep. 2016)

Tata Motors Ltd's average inventory for the six months ended in Sep. 2016 was $2,783 Mil. Tata Motors Ltd's cost of goods sold for the six months ended in Sep. 2016 was $6,052 Mil. Hence, Tata Motors Ltd's days inventory for the six months ended in Sep. 2016 was 83.91.

TTM' s Days Inventory Range Over the Past 10 Years
Min: 41.71   Max: 69.49
Current: 45.64

41.71
69.49

During the past 13 years, Tata Motors Ltd's highest Days Inventory was 69.49. The lowest was 41.71. And the median was 58.41.

TTM's Days Inventory is ranked higher than
64% of the 1221 Companies
in the Global Auto Manufacturers industry.

( Industry Median: 56.27 vs. TTM: 45.64 )

Tata Motors Ltd's days inventory increased from Mar. 2016 (32.92) to Sep. 2016 (41.95). It might indicate that Tata Motors Ltd's sales slowed down.

Warning Sign:

If a company builds up inventory, it may mean it is having difficulties selling its goods.

Inventory can be measured by Days Sales of Inventory (DSI). Tata Motors Ltd's days sales of inventory (DSI) for the six months ended in Sep. 2016 was 50.56.

Inventory turnover measures how fast the company turns over its inventory within a year. Tata Motors Ltd's inventory turnover for the six months ended in Sep. 2016 was 2.17.

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. Tata Motors Ltd's inventory to revenue ratio for the six months ended in Sep. 2016 was 0.28.


Definition

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

Tata Motors Ltd's Days Inventory for the fiscal year that ended in Mar. 2016 is calculated as

Days Inventory (A: Mar. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Mar. 2015 ) + Inventory (A: Mar. 2016 )) / 2 ) / COGS (A: Mar. 2016 )*Days in Period
=( (4597.91134834 + 4879.14499581) / 2 ) / 24093.5433669*365
=4738.52817207 / 24093.5433669*365
=71.79

Tata Motors Ltd's Days Inventory for the quarter that ended in Sep. 2016 is calculated as:

Days Inventory (Q: Sep. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Jun. 2016 ) + Inventory (Q: Sep. 2016 )) / 2 ) / COGS (Q: Sep. 2016 )*Days in Period
=( (0 + 5565.05250788) / 2 ) / 6051.98774466*365 / 2
=2782.52625394 / 6051.98774466*365 / 2
=83.91

* 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).

Tata Motors Ltd's Days Sales of Inventory for the six months ended in Sep. 2016 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=2782.52625394/10042.8532028*365 / 2
=50.56

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

Tata Motors Ltd's Inventory Turnover for the six months ended in Sep. 2016 is calculated as

Inventory Turnover=Cost of Goods Sold / Average Inventory
=6051.98774466 / 2782.52625394
=2.17

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.

Tata Motors Ltd's Inventory to Revenue for the six months ended in Sep. 2016 is calculated as

Inventory to Revenue=Average Inventory / Revenue
=2782.52625394 / 10042.8532028
=0.28

* 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.

Tata Motors Ltd Annual Data

Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16
DaysInventory 41.4948.3556.6459.1757.0556.4961.6864.2264.6271.79

Tata Motors Ltd Semi-Annual Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DaysInventory 0.0036.1762.8532.370.0042.3738.0532.9237.2041.95
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK