The Descartes Systems Group (The Descartes Systems Group) Days Inventory

: 2.27 (As of Jan. 2024)

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Days Inventory is also known as Days Sales of Inventory (DSI). The Descartes Systems Group's Average Total Inventories for the three months ended in Jan. 2024 was $0.9 Mil. The Descartes Systems Group's Cost of Goods Sold for the three months ended in Jan. 2024 was $36.1 Mil. Hence, The Descartes Systems Group's Days Inventory for the three months ended in Jan. 2024 was 2.27.

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

DSGX' s Days Inventory Range Over the Past 10 Years
Min: 0.51 Med: 1.82 Max: 5.63
Current: 2.52

During the past 13 years, The Descartes Systems Group's highest Days Inventory was 5.63. The lowest was 0.51. And the median was 1.82.

DSGX's Days Inventory is ranked better than
79.42% of 1565 companies
in the Software industry
Industry Median: 19.53 vs DSGX: 2.52

The Descartes Systems Group's Days Inventory declined from Jan. 2023 (2.43) to Jan. 2024 (2.27).

Inventory Turnover measures how fast the company turns over its inventory within a year. The Descartes Systems Group's Inventory Turnover for the three months ended in Jan. 2024 was 40.26.

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. The Descartes Systems Group's Inventory-to-Revenue for the three months ended in Jan. 2024 was 0.01.

The Descartes Systems Group Days Inventory Historical Data

The historical data trend for The Descartes Systems Group'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.

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The Descartes Systems Group Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Days Inventory

1.08

1.71

2.32

2.62

2.00

The Descartes Systems Group Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Days Inventory																2.43	2.93	3.03	2.48	2.27

Competitive Comparison

For the Software - Application subindustry, The Descartes Systems Group'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.

The Descartes Systems Group Days Inventory Distribution

For the Software industry and Technology sector, The Descartes Systems Group's Days Inventory distribution charts can be found below:

* The bar in red indicates where The Descartes Systems Group's Days Inventory falls into.

The Descartes Systems Group Days Inventory Calculation

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

The Descartes Systems Group's Days Inventory for the fiscal year that ended in Jan. 2024 is calculated as

	Days Inventory (A: Jan. 2024 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (A: Jan. 2023 )	+	Total Inventories (A: Jan. 2024 ))	/	count )	/	Cost of Goods Sold (A: Jan. 2024 )	*	Days in Period
=	( (0.759	+	0)	/	1 )	/	138.295	*	365
=	0.759					/	138.295	*	365
=	2.00

The Descartes Systems Group's Days Inventory for the quarter that ended in Jan. 2024 is calculated as:

	Days Inventory (Q: Jan. 2024 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (Q: Oct. 2023 )	+	Total Inventories (Q: Jan. 2024 ))	/	count )	/	Cost of Goods Sold (Q: Jan. 2024 )	*	Days in Period
=	( (0.897	+	0)	/	1 )	/	36.111	*	365 / 4
=	0.897					/	36.111	*	365 / 4
=	2.27

The Descartes Systems Group (NAS:DSGX) 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.

The Descartes Systems Group's Inventory Turnover for the three months ended in Jan. 2024 is calculated as

Inventory Turnover	=	Cost of Goods Sold	/	Average Total Inventories
	=	36.111	/	0.897
	=	40.26

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.

The Descartes Systems Group's Inventory to Revenue for the three months ended in Jan. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories	/	Revenue
	=	0.897	/	148.226
	=	0.01

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.

The Descartes Systems Group Days Inventory Related Terms

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The Descartes Systems Group (The Descartes Systems Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » The Descartes Systems Group Inc (NAS:DSGX) » Definitions » Days Inventory

Comparable Companies

Traded in Other Exchanges

DC2:Germany DC2:Germany DSG:Canada

Address

120 Randall Drive, Waterloo, ON, CAN, N2V 1C6

Website

https://www.descartes.com

The Descartes Systems Group provides a software solution that allows users in the shipping industry to communicate with one another. The core product is the Global Logistics Network, which is best understood as transaction driven. Descartes charges clients to send/receive messages, data, and documents on the GLN (the transactions). Customers typically contract for a monthly minimum over a multiyear period. The GLN platform allows for Descartes to upsell additional software modules as well, typically provided via a software-as-a-service model.