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GuruFocus has detected 2 Warning Signs with Brady Corp $BRC.
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Brady Corp (NYSE:BRC)
Days Inventory
65.37 (As of Apr. 2017)

Brady Corp's average inventory for the three months ended in Apr. 2017 was $97 Mil. Brady Corp's cost of goods sold for the three months ended in Apr. 2017 was $136 Mil. Hence, Brady Corp's days inventory for the three months ended in Apr. 2017 was 65.37.

BRC' s Days Inventory Range Over the Past 10 Years
Min: 54.1   Max: 79.64
Current: 65.26

54.1
79.64

During the past 13 years, Brady Corp's highest Days Inventory was 79.64. The lowest was 54.10. And the median was 65.43.

BRC's Days Inventory is ranked lower than
51% of the 226 Companies
in the Global Security & Protection Services industry.

( Industry Median: 64.64 vs. BRC: 65.26 )

Brady Corp's days inventory increased from Apr. 2016 (64.49) to Apr. 2017 (65.37). It might indicate that Brady Corp's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Brady Corp's days sales of inventory (DSI) for the three months ended in Apr. 2017 was 32.22.

Inventory turnover measures how fast the company turns over its inventory within a year. Brady Corp's inventory turnover for the three months ended in Apr. 2017 was 1.40.

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. Brady Corp's inventory to revenue ratio for the three months ended in Apr. 2017 was 0.35.


Definition

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

Brady Corp's Days Inventory for the fiscal year that ended in Jul. 2016 is calculated as

Days Inventory (A: Jul. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Jul. 2015 ) + Inventory (A: Jul. 2016 )) / 2 ) / COGS (A: Jul. 2016 )*Days in Period
=( (104.507 + 99.427) / 2 ) / 561.852*365
=101.967 / 561.852*365
=66.24

Brady Corp'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
=( (97.408 + 97.477) / 2 ) / 136.018*365 / 4
=97.4425 / 136.018*365 / 4
=65.37

* 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).

Brady Corp'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
=97.4425/275.927*365 / 4
=32.22

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

Brady Corp'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.

Brady Corp's Inventory to Revenue for the three months ended in Apr. 2017 is calculated as

Inventory to Revenue=Average Inventory / Revenue
=97.4425 / 275.927
=0.35

* 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.

Brady Corp Annual Data

Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14Jul15Jul16
DaysInventory 64.5864.3066.0554.1076.9979.6466.6361.6764.8166.24

Brady Corp Quarterly Data

Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17Apr17
DaysInventory 74.1670.5862.4565.5667.6564.4964.7164.2366.4165.37
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