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GuruFocus has detected 5 Warning Signs with Applied Materials Inc $AMAT.
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Applied Materials Inc (NAS:AMAT)
Days Inventory
114.65 (As of Apr. 2017)

Applied Materials Inc's average inventory for the three months ended in Apr. 2017 was $2,445 Mil. Applied Materials Inc's cost of goods sold for the three months ended in Apr. 2017 was $1,946 Mil. Hence, Applied Materials Inc's days inventory for the three months ended in Apr. 2017 was 114.65.

AMAT' s Days Inventory Range Over the Past 10 Years
Min: 94.69   Max: 184.11
Current: 108.81

94.69
184.11

During the past 13 years, Applied Materials Inc's highest Days Inventory was 184.11. The lowest was 94.69. And the median was 106.24.

AMAT's Days Inventory is ranked lower than
71% of the 813 Companies
in the Global Semiconductor Equipment & Materials industry.

( Industry Median: 77.37 vs. AMAT: 108.81 )

Applied Materials Inc's days inventory declined from Apr. 2016 (118.61) to Apr. 2017 (114.65).

Inventory can be measured by Days Sales of Inventory (DSI). Applied Materials Inc's days sales of inventory (DSI) for the three months ended in Apr. 2017 was 62.92.

Inventory turnover measures how fast the company turns over its inventory within a year. Applied Materials Inc's inventory turnover for the three months ended in Apr. 2017 was 0.80.

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. Applied Materials Inc's inventory to revenue ratio for the three months ended in Apr. 2017 was 0.69.


Definition

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

Applied Materials Inc's Days Inventory for the fiscal year that ended in Oct. 2016 is calculated as

Days Inventory (A: Oct. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Oct. 2015 ) + Inventory (A: Oct. 2016 )) / 2 ) / COGS (A: Oct. 2016 )*Days in Period
=( (1833 + 2050) / 2 ) / 6314*365
=1941.5 / 6314*365
=112.23

Applied Materials Inc's Days Inventory for the quarter that ended in Apr. 2017 is calculated as:

Days Inventory (Q: Apr. 2017 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Jan. 2017 ) + Inventory (Q: Apr. 2017 )) / 2 ) / COGS (Q: Apr. 2017 )*Days in Period
=( (2281 + 2609) / 2 ) / 1946*365 / 4
=2445 / 1946*365 / 4
=114.65

* 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).

Applied Materials Inc's Days Sales of Inventory for the three months ended in Apr. 2017 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=2445/3546*365 / 4
=62.92

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

Applied Materials Inc's Inventory Turnover for the three months ended in Apr. 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.

Applied Materials Inc's Inventory to Revenue for the three months ended in Apr. 2017 is calculated as

* 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.

Applied Materials Inc Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15Oct16
DaysInventory 94.69128.52184.1199.3296.29100.36108.46104.01108.73112.23

Applied Materials Inc Quarterly Data

Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17Apr17
DaysInventory 104.55107.31107.00115.67124.80118.61110.6397.98107.80114.65
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