Alcoa (ARNC.PR.PFD) Days Inventory : 74.58 (As of Sep. 2016)

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What is Alcoa Days Inventory?

Days Inventory is also known as Days Sales of Inventory (DSI). Alcoa's Average Total Inventories for the three months ended in Sep. 2016 was $3,446.50 Mil. Alcoa's Cost of Goods Sold for the three months ended in Sep. 2016 was $4,217.00 Mil. Hence, Alcoa's Days Inventory for the three months ended in Sep. 2016 was 74.58.

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

ARNC.PR.PFD' s Days Inventory Range Over the Past 10 Years
Min: 48.66 Med: 52.15 Max: 75.44
Current: 75.44

During the past 13 years, Alcoa's highest Days Inventory was 75.44. The lowest was 48.66. And the median was 52.15.

ARNC.PR.PFD's Days Inventory is not ranked
in the Metals & Mining industry.
Industry Median: 87.34 vs ARNC.PR.PFD: 75.44

Alcoa's Days Inventory increased from Sep. 2015 (67.24) to Sep. 2016 (74.58). It might indicate that Alcoa's sales slowed down.

Inventory Turnover measures how fast the company turns over its inventory within a year. Alcoa's Inventory Turnover for the three months ended in Sep. 2016 was 1.22.

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. Alcoa's Inventory-to-Revenue for the three months ended in Sep. 2016 was 0.66.

Alcoa Days Inventory Historical Data

The historical data trend for Alcoa'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.

* Premium members only.

Alcoa Days Inventory Chart

Alcoa Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Days Inventory

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48.66

51.20

52.33

55.19

65.89

Alcoa Quarterly Data
	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16
Days Inventory	Get a 7-Day Free Trial															67.24	72.53	78.93	75.61	74.58

Competitive Comparison of Alcoa's Days Inventory

For the Aluminum subindustry, Alcoa'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.

Alcoa's Days Inventory Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Alcoa's Days Inventory distribution charts can be found below:

* The bar in red indicates where Alcoa's Days Inventory falls into.

Alcoa Days Inventory Calculation

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

Alcoa's Days Inventory for the fiscal year that ended in Dec. 2015 is calculated as

	Days Inventory (A: Dec. 2015 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (A: Dec. 2014 )	+	Total Inventories (A: Dec. 2015 ))	/	count )	/	Cost of Goods Sold (A: Dec. 2015 )	*	Days in Period
=	( (3082	+	3442)	/	2 )	/	18069	*	365
=	3262					/	18069	*	365
=	65.89

Alcoa's Days Inventory for the quarter that ended in Sep. 2016 is calculated as:

	Days Inventory (Q: Sep. 2016 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (Q: Jun. 2016 )	+	Total Inventories (Q: Sep. 2016 ))	/	count )	/	Cost of Goods Sold (Q: Sep. 2016 )	*	Days in Period
=	( (3438	+	3455)	/	2 )	/	4217	*	365 / 4
=	3446.5					/	4217	*	365 / 4
=	74.58

Alcoa (AMEX:ARNC.PR.PFD) 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.

Alcoa's Inventory Turnover for the three months ended in Sep. 2016 is calculated as

Inventory Turnover	=	Cost of Goods Sold	/	Average Total Inventories
	=	4217	/	3446.5
	=	1.22

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.

Alcoa's Inventory to Revenue for the three months ended in Sep. 2016 is calculated as

Inventory-to-Revenue	=	Average Total Inventories	/	Revenue
	=	3446.5	/	5213
	=	0.66

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.

Alcoa Days Inventory Related Terms

Thank you for viewing the detailed overview of Alcoa's Days Inventory provided by GuruFocus.com. Please click on the following links to see related term pages.

Alcoa (ARNC.PR.PFD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Alcoa Inc (AMEX:ARNC.PR.PFD) » Definitions » Days Inventory

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

https://www.arconic.com

Arconic Inc, formerly known as Alcoa Inc was first incorporated as the Pittsburgh Reduction Company on October 1, 1888. The Company is engaged in manufacturing and engineering lightweight metals. Its products include aluminum, titanium, and nickel, used in aerospace, automotive, commercial transportation, packaging, building and construction, oil and gas, defense, consumer electronics, and industrial applications. The Company is also engaged in the production and management of aluminum, fabricated aluminum, and alumina combined, through its active participation in all aspects of the industry: technology, mining, refining, smelting, fabricating, and recycling. It has investments and operating activities in, among others, Australia, Brazil, China, Guinea, Iceland, Russia, and Saudi Arabia. The Company operates in segments including Global Rolled Products, Engineered Products and Solutions, and Transportation and Construction Solutions. The Company's Global Rolled Products segment represents its midstream operations. The Engineered Products and Solutions segment represents a portion of the Company's downstream operations. Its downstream portfolio includes two segments Engineered Products and Solutions and Transportation and Construction Solutions. The Engineered Products and Solutions consist of Alcoa Titanium & Engineered Products; Alcoa Fastening Systems & Rings; Alcoa Forgings and Extrusions; and Alcoa Power and Propulsion. The Company's Transportation and Construction Solutions segment represents a portion of its downstream operations. The raw materials used includes bauxite, alloying materials, caustic soda, alumina, electricity, aluminum fluoride, fuel oil, calcined petroleum coke, lime (CaO), cathode blocks, natural gas, electricity, liquid pitch, natural gas, titanium alloys, titanium sponge and resin. The Company's trademark products include Howmet metal castings, Huck fasteners, Kawneer building panels and Dura-Bright wheels with easy-clean surface treatments.

Executives

Joseph S Cantie	director	C/O DELPHI AUTOMOTIVE, 5725 DELPHI DRIVE, TROY MI 48098
Amy E Alving	director	ARCONIC INC., 390 PARK AVENUE, NEW YORK NY 10022
Tolga I Oal	director, officer: Co-Chief Executive Officer	201 ISABELLA STREET, PITTSTBURGH PA 15212
John C Plant	director, officer: Chairman and Co-CEO	C/O MASCO CORPORATION, 17450 COLLEGE PARKWAY, LIVONIA MI 48152
Jody Miller	director	225 SOUTH SIXTH STREET, 9TH FLOOR, MINNEAPOLIS MN 55402
James F Albaugh	director	C/O THE BOEING COMPANY, 100 NORTH RIVERSIDE PLAZA, CHICAGO IL 60606
Ulrich Schmidt	director	PRECISION CASTPARTS CORP., 4650 SW MACADAM AVENUE, SUITE 400, PORTLAND OR 97239
Nicole Weyerhaeuser Piasecki	director	2000 WELLS FARGO PLACE, 30 EAST 7TH STREET, SAINT PAUL MN 55101-4930
Robert F Leduc	director	UNITED TECHNOLOGIES CORP, 10 FARM SPRINGS ROAD, FARMINGTON CT 06032
David J Miller	director	C/O ELLIOTT MANAGEMENT CORPORATION, 40 WEST 57TH STREET, NEW YORK NY 10019
Neil Edward Marchuk	officer: EVP, HR	12025 TECH CENTER DRIVE, LIVONIA MI 48150
Katherine H Ramundo	officer: CLO and Corporate Secretary	C/O APTIV, 5725 INNOVATION DRIVE, TROY MI 48098
W Paul Myron	officer: Vice President and Controller	ALCOA INC., 390 PARK AVENUE, NEW YORK NY 10022-4608
Ken Giacobbe	officer: CFO	ALCOA INC., 390 PARK AVENUE, NEW YORK NY 10022-4608
Timothy Donald Myers	officer: Executive Vice President	ALCOA INC., 390 PARK AVENUE, NEW YORK NY 10022-4608