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GuruFocus has detected 3 Warning Signs with Broadcom Ltd $AVGO.
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Broadcom Ltd (NAS:AVGO)
Days Inventory
58.39 (As of Jan. 2017)

Broadcom Ltd's average inventory for the three months ended in Jan. 2017 was $1,368 Mil. Broadcom Ltd's cost of goods sold for the three months ended in Jan. 2017 was $2,138 Mil. Hence, Broadcom Ltd's days inventory for the three months ended in Jan. 2017 was 58.39.

AVGO' s Days Inventory Range Over the Past 10 Years
Min: 43.86   Max: 69.13
Current: 50.87

43.86
69.13

During the past 10 years, Broadcom Ltd's highest Days Inventory was 69.13. The lowest was 43.86. And the median was 58.07.

AVGO's Days Inventory is ranked higher than
71% of the 813 Companies
in the Global Semiconductors industry.

( Industry Median: 77.37 vs. AVGO: 50.87 )

Broadcom Ltd's days inventory increased from Jan. 2016 (55.74) to Jan. 2017 (58.39). It might indicate that Broadcom Ltd's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Broadcom Ltd's days sales of inventory (DSI) for the three months ended in Jan. 2017 was 30.16.

Inventory turnover measures how fast the company turns over its inventory within a year. Broadcom Ltd's inventory turnover for the three months ended in Jan. 2017 was 1.56.

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. Broadcom Ltd's inventory to revenue ratio for the three months ended in Jan. 2017 was 0.33.


Definition

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

Broadcom Ltd'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
=( (524 + 1400) / 2 ) / 7300*365
=962 / 7300*365
=48.10

Broadcom Ltd's Days Inventory for the quarter that ended in Jan. 2017 is calculated as:

Days Inventory (Q: Jan. 2017 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Oct. 2016 ) + Inventory (Q: Jan. 2017 )) / 2 ) / COGS (Q: Jan. 2017 )*Days in Period
=( (1400 + 1336) / 2 ) / 2138*365 / 4
=1368 / 2138*365 / 4
=58.39

* 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).

Broadcom Ltd's Days Sales of Inventory for the three months ended in Jan. 2017 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=1368/4139*365 / 4
=30.16

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

Broadcom Ltd's Inventory Turnover for the three months ended in Jan. 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.

Broadcom Ltd's Inventory to Revenue for the three months ended in Jan. 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.

Broadcom Ltd Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15Oct16
DaysInventory 43.8657.3469.1356.8458.7957.9566.1361.3458.1948.10

Broadcom Ltd Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
DaysInventory 56.9557.4758.8153.4555.8055.7435.7962.9462.8358.39
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