Dr Reddy's Laboratories (Dr Reddy's Laboratories) Days Inventory : 179.05 (As of Dec. 2023)

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What is Dr Reddy's Laboratories Days Inventory?

Days Inventory is also known as Days Sales of Inventory (DSI). Dr Reddy's Laboratories's Average Total Inventories for the three months ended in Dec. 2023 was $706 Mil. Dr Reddy's Laboratories's Cost of Goods Sold for the three months ended in Dec. 2023 was $360 Mil. Hence, Dr Reddy's Laboratories's Days Inventory for the three months ended in Dec. 2023 was 179.05.

The historical rank and industry rank for Dr Reddy's Laboratories's Days Inventory or its related term are showing as below:

RDY' s Days Inventory Range Over the Past 10 Years
Min: 143.94 Med: 159.05 Max: 174.78
Current: 172.72

During the past 13 years, Dr Reddy's Laboratories's highest Days Inventory was 174.78. The lowest was 143.94. And the median was 159.05.

RDY's Days Inventory is ranked worse than
56.12% of 973 companies
in the Drug Manufacturers industry
Industry Median: 157.96 vs RDY: 172.72

Dr Reddy's Laboratories's Days Inventory increased from Dec. 2022 (164.81) to Dec. 2023 (179.05). It might indicate that Dr Reddy's Laboratories's sales slowed down.

Inventory Turnover measures how fast the company turns over its inventory within a year. Dr Reddy's Laboratories's Inventory Turnover for the three months ended in Dec. 2023 was 0.51.

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. Dr Reddy's Laboratories's Inventory-to-Revenue for the three months ended in Dec. 2023 was 0.81.

Dr Reddy's Laboratories Days Inventory Historical Data

The historical data trend for Dr Reddy's Laboratories's Days Inventory 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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Dr Reddy's Laboratories Days Inventory Chart

Dr Reddy's Laboratories Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Days Inventory

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167.56

160.98

167.80

178.59

177.49

Dr Reddy's Laboratories Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Days Inventory	Get a 7-Day Free Trial															164.81	165.56	165.65	175.75	179.05

Competitive Comparison of Dr Reddy's Laboratories's Days Inventory

For the Drug Manufacturers - Specialty & Generic subindustry, Dr Reddy's Laboratories's Days Inventory, along with its competitors' market caps and Days Inventory data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Dr Reddy's Laboratories's Days Inventory Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Dr Reddy's Laboratories's Days Inventory distribution charts can be found below:

* The bar in red indicates where Dr Reddy's Laboratories's Days Inventory falls into.

Dr Reddy's Laboratories Days Inventory Calculation

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

Dr Reddy's Laboratories's Days Inventory for the fiscal year that ended in Mar. 2023 is calculated as

	Days Inventory (A: Mar. 2023 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (A: Mar. 2022 )	+	Total Inventories (A: Mar. 2023 ))	/	count )	/	Cost of Goods Sold (A: Mar. 2023 )	*	Days in Period
=	( (667.86	+	591.614)	/	2 )	/	1295.011	*	365
=	629.737					/	1295.011	*	365
=	177.49

Dr Reddy's Laboratories's Days Inventory for the quarter that ended in Dec. 2023 is calculated as:

	Days Inventory (Q: Dec. 2023 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
=	( (681.257	+	730.247)	/	2 )	/	359.682	*	365 / 4
=	705.752					/	359.682	*	365 / 4
=	179.05

Dr Reddy's Laboratories (NYSE:RDY) Days Inventory Explanation

Days Inventory indicates the liquidity of the inventory. Generally, a lower Days Inventory is preferred as it indicates a shorter duration to clear off the inventory. An increase of the ratio may indicate the company's sales slowed. Similar ratios related to Days Inventory are:

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

Dr Reddy's Laboratories's Inventory Turnover for the three months ended in Dec. 2023 is calculated as

Inventory Turnover	=	Cost of Goods Sold	/	Average Total Inventories
	=	359.682	/	705.752
	=	0.51

2. 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.

Dr Reddy's Laboratories's Inventory to Revenue for the three months ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories	/	Revenue
	=	705.752	/	866.601
	=	0.81

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.

Dr Reddy's Laboratories Days Inventory Related Terms

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Dr Reddy's Laboratories (Dr Reddy's Laboratories) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Dr Reddy's Laboratories Ltd (NYSE:RDY) » Definitions » Days Inventory

Traded in Other Exchanges

DRREDDY:India 500124:India RDDA:Germany RDDA:Germany R1DY34:Brazil

Address

8-2-337, Road No. 3, Banjara Hills, Hyderabad, TG, IND, 500 034

Website

https://www.drreddys.com

Dr. Reddy's is one of the largest generic drug manufacturers in the world. It has a significant presence in North America, a region that makes up roughly half of its generics sales, and it services India (22% of its generics sales), Russia (12%), and certain European and Latin American countries. Beyond simple generics, Dr. Reddy's also has a solid portfolio of injectables which make up 25% of its North America sales. In branded generic markets like India, Dr. Reddy's has established a compelling presence with its strong brand name and earned a top five spot in key therapeutic areas including oncology and gastroenterology. Dr. Reddy's also has an active pharmaceutical ingredient business that manufactures over 150 APIs and sells in over 75 countries.