Switch to:
GuruFocus has detected 4 Warning Signs with Magellan Midstream Partners LP $MMP.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Magellan Midstream Partners LP (NYSE:MMP)
Days Inventory
42.08 (As of Mar. 2017)

Magellan Midstream Partners LP's average inventory for the three months ended in Mar. 2017 was $140 Mil. Magellan Midstream Partners LP's cost of goods sold for the three months ended in Mar. 2017 was $304 Mil. Hence, Magellan Midstream Partners LP's days inventory for the three months ended in Mar. 2017 was 42.08.

MMP' s Days Inventory Range Over the Past 10 Years
Min: 43.73   Max: 89.02
Current: 46.34

43.73
89.02

During the past 13 years, Magellan Midstream Partners LP's highest Days Inventory was 89.02. The lowest was 43.73. And the median was 67.06.

MMP's Days Inventory is ranked lower than
85% of the 81 Companies
in the Global Oil & Gas Midstream industry.

( Industry Median: 16.16 vs. MMP: 46.34 )

Magellan Midstream Partners LP's days inventory declined from Mar. 2016 (50.73) to Mar. 2017 (42.08).

Inventory can be measured by Days Sales of Inventory (DSI). Magellan Midstream Partners LP's days sales of inventory (DSI) for the three months ended in Mar. 2017 was 19.95.

Inventory turnover measures how fast the company turns over its inventory within a year. Magellan Midstream Partners LP's inventory turnover for the three months ended in Mar. 2017 was 2.17.

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. Magellan Midstream Partners LP's inventory to revenue ratio for the three months ended in Mar. 2017 was 0.22.


Definition

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

Magellan Midstream Partners LP's Days Inventory for the fiscal year that ended in Dec. 2016 is calculated as

Days Inventory (A: Dec. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Dec. 2015 ) + Inventory (A: Dec. 2016 )) / 2 ) / COGS (A: Dec. 2016 )*Days in Period
=( (130.868 + 134.378) / 2 ) / 1023.097*365
=132.623 / 1023.097*365
=47.31

Magellan Midstream Partners LP's Days Inventory for the quarter that ended in Mar. 2017 is calculated as:

Days Inventory (Q: Mar. 2017 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Dec. 2016 ) + Inventory (Q: Mar. 2017 )) / 2 ) / COGS (Q: Mar. 2017 )*Days in Period
=( (134.378 + 146.428) / 2 ) / 304.468*365 / 4
=140.403 / 304.468*365 / 4
=42.08

* 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).

Magellan Midstream Partners LP's Days Sales of Inventory for the three months ended in Mar. 2017 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=140.403/642.074*365 / 4
=19.95

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

Magellan Midstream Partners LP's Inventory Turnover for the three months ended in Mar. 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.

Magellan Midstream Partners LP's Inventory to Revenue for the three months ended in Mar. 2017 is calculated as

Inventory to Revenue=Average Inventory / Revenue
=140.403 / 642.074
=0.22

* 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.

Magellan Midstream Partners LP Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DaysInventory 43.7343.7681.6778.5885.6589.0276.6457.4754.1347.31

Magellan Midstream Partners LP Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DaysInventory 44.9159.8761.8257.8246.5850.7357.2750.2938.7742.08
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK