Mead Johnson Nutrition Co (Mead Johnson Nutrition Co) Total Inventories : $499 Mil (As of Mar. 2017)

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What is Mead Johnson Nutrition Co Total Inventories?

Mead Johnson Nutrition Co's total inventories for the quarter that ended in Mar. 2017 was $499 Mil. Mead Johnson Nutrition Co's average total inventories from the quarter that ended in Dec. 2016 to the quarter that ended in Mar. 2017 was $486 Mil.

In Ben Graham's calculation of Net-Net Working Capital, inventory is only considered worth half of its book value. Mead Johnson Nutrition Co's Net-Net Working Capital per share for the quarter that ended in Mar. 2017 was $-14.23.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Mead Johnson Nutrition Co's Days Inventory for the three months ended in Mar. 2017 was 134.30.

Inventory Turnover measures how fast the company turns over its inventory within a year. Mead Johnson Nutrition Co's Inventory Turnover for the quarter that ended in Mar. 2017 was 0.68.

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. Mead Johnson Nutrition Co's Inventory-to-Revenue for the quarter that ended in Mar. 2017 was 0.55.

Mead Johnson Nutrition Co Total Inventories Historical Data

The historical data trend for Mead Johnson Nutrition Co's Total Inventories can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Mead Johnson Nutrition Co Total Inventories Chart

Mead Johnson Nutrition Co Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Total Inventories

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435.90

534.80

555.50

484.90

473.50

Mead Johnson Nutrition Co Quarterly Data
	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17
Total Inventories	Get a 7-Day Free Trial															486.90	465.80	476.00	473.50	498.50

Mead Johnson Nutrition Co Total Inventories Calculation

Total Inventories includes the raw materials, work-in-process goods and completely finished goods of a company. It is a portion of a company's current assets.

Mead Johnson Nutrition Co (NYSE:MJN) Total Inventories Explanation

Inventory control is an important part of business operation. If a company does not have enough inventory, it may not be able to meet customers' required delivery time. If it has too much inventory, the cost of holding the inventory can be high.

1. In Ben Graham's calculation of Net-Net Working Capital (NNWC), inventory is only considered worth half of its book value.

Mead Johnson Nutrition Co's Net-Net Working Capital Per Share for the quarter that ended in Mar. 2017 is

	Net-Net Working Capital Per Share (Q: Mar. 2017 )
=	(Cash And Cash Equivalents	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(1724.4	+	0.75 * 0	+	0.5 * 498.5	-	4619.9
-	0	-	38.3)	/	188.6
=	-14.23

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

Mead Johnson Nutrition Co's Days Inventory for the three months ended in Mar. 2017 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2017 )	/	Cost of Goods Sold (Q: Mar. 2017 )	*	Days in Period
	=	486	/	330.2	*	365 / 4
	=	134.30

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

Mead Johnson Nutrition Co's Inventory Turnover for the quarter that ended in Mar. 2017 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Mar. 2017 )	/	Average Total Inventories (Q: Mar. 2017 )
	=	330.2	/	486
	=	0.68

4. 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.

Mead Johnson Nutrition Co's Inventory to Revenue for the quarter that ended in Mar. 2017 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2017 )	/	Revenue (Q: Mar. 2017 )
	=	486	/	883.5
	=	0.55

Be Aware

Manufacturers with durable competitive advantages have the advantage that the products they sell do not change, and therefore will never become obsolete. Buffett likes this advantage.

When identifying manufacturers with durable competitive advantage, look for inventory and net earnings that rise correspondingly. This indicates that the company is finding profitable ways to increase sales which called for an increase in inventory.

Manufacturers with inventories that spike up and down are indicative of competitive industries subject to boom and bust.

Mead Johnson Nutrition Co Total Inventories Related Terms

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Mead Johnson Nutrition Co (Mead Johnson Nutrition Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Mead Johnson Nutrition Co (NYSE:MJN) » Definitions » Total Inventories

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Address

Website

http://www.meadjohnson.com

Mead Johnson Nutrition makes, distributes, and markets pediatric nutrition products worldwide under a variety of brands, including Enfamil, its largest label, along with Sustagen, Enfagrow, and Nutramigen. Infant formula represented 59% of 2015 sales and children's nutrition 39%, with expectant and nursing mother nutrition and pediatric vitamins comprising the remainder. The company sells its products globally; 73% of sales were generated outside the United States in 2015. At about 30% of revenue, China is the company's largest market.

Executives

Kimberly A Casiano	director	C/O FORD MOTOR COMPANY, ONE AMERICAN ROAD, DEARBORN MI 48126
James E. Shiah	officer: SVP and Controller	2 PARK AVENUE, NEW YORK NY 10016
Howard B Bernick	director	1100 N WOOD DALE RD, WOOD DALE IL 60191
Michael A. Sherman	director	3000 KENT AVE STE A1-100, WEST LAFAYETTE IN 47906
Robert S Singer	director	6301 FITCH PATH, NEW ALBANY OH 43054
Celeste A. Clark	director	C/O ADVANCEPIERRE FOODS HOLDINGS, INC., 9987 CARVER ROAD, BLUE ASH OH 45242
Peter Gervis Ratcliffe	director
Steven Altschuler	director	MEAD JOHNSON NUTRITION COMPANY, 2701 PATRIOT BLVD, GLENVIEW IL 60026
Patrick M Sheller	officer: SVP, Gen. Counsel & Secretary	343 STATE STREET, ROCHESTER NY 14650
Elliot Sigal	director
James M Cornelius	director
Michael Grobstein	director	C/O GUIDANT CORP, 111 MONUMENT CIRCLE #2900, INDIANAPOLIS IN 46204-5129
Anna C Catalano	director	1313 NORTH MARKET STREET, WILMINGTON DE 19894
Peter G Leemputte	officer: EVP and CFO	CHICAGO TITLE CORP, 171 N CLARK ST, CHICAGO IL 80601
Lynn H Clark	officer: Sr. VP, Human Resources	2400 WEST LLOYD EXPRESSWAY, EVANSVILLE IL 47721