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GuruFocus has detected 2 Warning Signs with Finisar Corp $FNSR.
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Finisar Corp (NAS:FNSR)
Days Inventory
126.38 (As of Apr. 2017)

Finisar Corp's average inventory for the three months ended in Apr. 2017 was $322 Mil. Finisar Corp's cost of goods sold for the three months ended in Apr. 2017 was $232 Mil. Hence, Finisar Corp's days inventory for the three months ended in Apr. 2017 was 126.38.

FNSR' s Days Inventory Range Over the Past 10 Years
Min: 93.8   Max: 116.7
Current: 114.4

93.8
116.7

During the past 13 years, Finisar Corp's highest Days Inventory was 116.70. The lowest was 93.80. And the median was 109.65.

FNSR's Days Inventory is ranked lower than
72% of the 520 Companies
in the Global Communication Equipment industry.

( Industry Median: 69.94 vs. FNSR: 114.40 )

Finisar Corp's days inventory increased from Apr. 2016 (107.07) to Apr. 2017 (126.38). It might indicate that Finisar Corp's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Finisar Corp's days sales of inventory (DSI) for the three months ended in Apr. 2017 was 82.14.

Inventory turnover measures how fast the company turns over its inventory within a year. Finisar Corp's inventory turnover for the three months ended in Apr. 2017 was 0.72.

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. Finisar Corp's inventory to revenue ratio for the three months ended in Apr. 2017 was 0.90.


Definition

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

Finisar Corp's Days Inventory for the fiscal year that ended in Apr. 2017 is calculated as

Days Inventory (A: Apr. 2017 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Apr. 2016 ) + Inventory (A: Apr. 2017 )) / 2 ) / COGS (A: Apr. 2017 )*Days in Period
=( (273.291 + 331.388) / 2 ) / 945.656*365
=302.3395 / 945.656*365
=116.70

Finisar 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
=( (312.271 + 331.388) / 2 ) / 232.363*365 / 4
=321.8295 / 232.363*365 / 4
=126.38

* 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).

Finisar 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
=321.8295/357.527*365 / 4
=82.14

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

Finisar 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.

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

Inventory to Revenue=Average Inventory / Revenue
=321.8295 / 357.527
=0.90

* 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.

Finisar Corp Annual Data

Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15Apr16Apr17
DaysInventory 97.9196.95100.2693.80109.10112.93110.59110.19111.88116.70

Finisar Corp Quarterly Data

Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17Apr17
DaysInventory 112.43110.99113.89107.51108.63107.07106.82109.15113.10126.38
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