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GuruFocus has detected 5 Warning Signs with Alere Inc $ALR.
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Alere Inc (NYSE:ALR)
Days Inventory
93.99 (As of Mar. 2017)

Alere Inc's average inventory for the three months ended in Mar. 2017 was $316 Mil. Alere Inc's cost of goods sold for the three months ended in Mar. 2017 was $306 Mil. Hence, Alere Inc's days inventory for the three months ended in Mar. 2017 was 93.99.

ALR' s Days Inventory Range Over the Past 10 Years
Min: 80.56   Max: 104.46
Current: 94.88

80.56
104.46

During the past 13 years, Alere Inc's highest Days Inventory was 104.46. The lowest was 80.56. And the median was 93.18.

ALR's Days Inventory is ranked lower than
55% of the 187 Companies
in the Global Diagnostics & Research industry.

( Industry Median: 82.10 vs. ALR: 94.88 )

Alere Inc's days inventory declined from Mar. 2016 (101.40) to Mar. 2017 (93.99).

Inventory can be measured by Days Sales of Inventory (DSI). Alere Inc's days sales of inventory (DSI) for the three months ended in Mar. 2017 was 48.97.

Inventory turnover measures how fast the company turns over its inventory within a year. Alere Inc's inventory turnover for the three months ended in Mar. 2017 was 0.97.

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. Alere Inc's inventory to revenue ratio for the three months ended in Mar. 2017 was 0.54.


Definition

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

Alere Inc's Days Inventory for the fiscal year that ended in Dec. 2016 is calculated as

Days Inventory (A: Dec. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Dec. 2015 ) + Inventory (A: Dec. 2016 )) / 2 ) / COGS (A: Dec. 2016 )*Days in Period
=( (350.949 + 308.92) / 2 ) / 1286.468*365
=329.9345 / 1286.468*365
=93.61

Alere Inc's Days Inventory for the quarter that ended in Mar. 2017 is calculated as:

Days Inventory (Q: Mar. 2017 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Dec. 2016 ) + Inventory (Q: Mar. 2017 )) / 2 ) / COGS (Q: Mar. 2017 )*Days in Period
=( (308.92 + 322.473) / 2 ) / 306.49*365 / 4
=315.6965 / 306.49*365 / 4
=93.99

* 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).

Alere Inc's Days Sales of Inventory for the three months ended in Mar. 2017 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=315.6965/588.216*365 / 4
=48.97

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

Alere Inc's Inventory Turnover for the three months ended in Mar. 2017 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.

Alere Inc's Inventory to Revenue for the three months ended in Mar. 2017 is calculated as

Inventory to Revenue=Average Inventory / Revenue
=315.6965 / 588.216
=0.54

* 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.

Alere Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DaysInventory 92.7480.5683.0485.6992.47104.4698.8799.3998.6593.61

Alere Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DaysInventory 95.48108.05100.65101.7288.71101.4094.9098.5091.2093.99
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