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Weatherford International PLC (NYSE:WFT)
Days Inventory
135.18 (As of Jun. 2015)

Weatherford International PLC's average inventory for the three months ended in Jun. 2015 was $2,987 Mil. Weatherford International PLC's cost of goods sold for the three months ended in Jun. 2015 was $2,016 Mil. Hence, Weatherford International PLC's days inventory for the three months ended in Jun. 2015 was 135.18.

Weatherford International PLC's days inventory increased from Jun. 2014 (109.15) to Jun. 2015 (135.18). It might indicate that Weatherford International PLC's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Weatherford International PLC's days sales of inventory (DSI) for the three months ended in Jun. 2015 was 114.02.

Inventory turnover measures how fast the company turns over its inventory within a year. Weatherford International PLC's inventory turnover for the three months ended in Jun. 2015 was 0.68.

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. Weatherford International PLC's inventory to revenue ratio for the three months ended in Jun. 2015 was 1.25.


Definition

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

Weatherford International PLC'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
=( (3200 + 3087) / 2 ) / 11461*365
=3143.5 / 11461*365
=100.11

Weatherford International PLC's Days Inventory for the quarter that ended in Jun. 2015 is calculated as:

Days Inventory (Q: Jun. 2015 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Mar. 2015 ) + Inventory (Q: Jun. 2015 )) / 2 ) / COGS (Q: Jun. 2015 )*Days in Period
=( (3052 + 2921) / 2 ) / 2016*365 / 4
=2986.5 / 2016*365 / 4
=135.18

* 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).

Weatherford International PLC's Days Sales of Inventory for the three months ended in Jun. 2015 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=2986.5/2390*365 / 4
=114.02

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

Weatherford International PLC's Inventory Turnover for the three months ended in Jun. 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.

Weatherford International PLC's Inventory to Revenue for the three months ended in Jun. 2015 is calculated as

* 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.

Weatherford International PLC Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DaysInventory 97.1492.24102.72108.05122.20116.13108.39105.19101.99100.11

Weatherford International PLC Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DaysInventory 112.61107.73108.4698.70106.12109.15105.67100.48127.20135.18
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