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Valeant Pharmaceuticals International Inc (NYSE:VRX)
Days Inventory
170.95 (As of Sep. 2015)

Valeant Pharmaceuticals International Inc's average inventory for the three months ended in Sep. 2015 was $1,214 Mil. Valeant Pharmaceuticals International Inc's cost of goods sold for the three months ended in Sep. 2015 was $648 Mil. Hence, Valeant Pharmaceuticals International Inc's days inventory for the three months ended in Sep. 2015 was 170.95.

VRX' s Days Inventory Range Over the Past 10 Years
Min: 115.82   Max: 185.86
Current: 152.33

115.82
185.86

During the past 13 years, Valeant Pharmaceuticals International Inc's highest Days Inventory was 185.86. The lowest was 115.82. And the median was 142.55.

VRX's Days Inventory is ranked lower than
79% of the 643 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 118.46 vs. VRX: 152.33 )

Valeant Pharmaceuticals International Inc's days inventory increased from Sep. 2014 (152.56) to Sep. 2015 (170.95). It might indicate that Valeant Pharmaceuticals International Inc's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Valeant Pharmaceuticals International Inc's days sales of inventory (DSI) for the three months ended in Sep. 2015 was 39.76.

Inventory turnover measures how fast the company turns over its inventory within a year. Valeant Pharmaceuticals International Inc's inventory turnover for the three months ended in Sep. 2015 was 0.53.

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. Valeant Pharmaceuticals International Inc's inventory to revenue ratio for the three months ended in Sep. 2015 was 0.44.


Definition

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

Valeant Pharmaceuticals International Inc's Days Inventory for the fiscal year that ended in Dec. 2014 is calculated as

Days Inventory (A: Dec. 2014 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Dec. 2013 ) + Inventory (A: Dec. 2014 )) / 2 ) / COGS (A: Dec. 2014 )*Days in Period
=( (883 + 950.6) / 2 ) / 2254.6*365
=916.8 / 2254.6*365
=148.42

Valeant Pharmaceuticals International Inc's Days Inventory for the quarter that ended in Sep. 2015 is calculated as:

Days Inventory (Q: Sep. 2015 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Jun. 2015 ) + Inventory (Q: Sep. 2015 )) / 2 ) / COGS (Q: Sep. 2015 )*Days in Period
=( (1229.5 + 1199.2) / 2 ) / 648.2*365 / 4
=1214.35 / 648.2*365 / 4
=170.95

* 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).

Valeant Pharmaceuticals International Inc's Days Sales of Inventory for the three months ended in Sep. 2015 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=1214.35/2786.8*365 / 4
=39.76

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

Valeant Pharmaceuticals International Inc's Inventory Turnover for the three months ended in Sep. 2015 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.

Valeant Pharmaceuticals International Inc's Inventory to Revenue for the three months ended in Sep. 2015 is calculated as

Inventory to Revenue=Average Inventory / Revenue
=1214.35 / 2786.8
=0.44

* 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.

Valeant Pharmaceuticals International Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DaysInventory 180.95145.42130.16129.87119.07140.49146.84166.84135.48148.42

Valeant Pharmaceuticals International Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DaysInventory 154.29124.78122.13161.62147.71152.56145.69154.77148.40170.95
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