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GuruFocus has detected 2 Warning Signs with Marathon Oil Corp $MRO.
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Marathon Oil Corp (NYSE:MRO)
Days Inventory
61.94 (As of Mar. 2017)

Marathon Oil Corp's average inventory for the three months ended in Mar. 2017 was $186 Mil. Marathon Oil Corp's cost of goods sold for the three months ended in Mar. 2017 was $274 Mil. Hence, Marathon Oil Corp's days inventory for the three months ended in Mar. 2017 was 61.94.

MRO' s Days Inventory Range Over the Past 10 Years
Min: 18.77   Max: 260.43
Current: 45.35

18.77
260.43

During the past 13 years, Marathon Oil Corp's highest Days Inventory was 260.43. The lowest was 18.77. And the median was 28.43.

MRO's Days Inventory is ranked lower than
66% of the 204 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 28.39 vs. MRO: 45.35 )

Marathon Oil Corp's days inventory declined from Mar. 2016 (84.05) to Mar. 2017 (61.94).

Inventory can be measured by Days Sales of Inventory (DSI). Marathon Oil Corp's days sales of inventory (DSI) for the three months ended in Mar. 2017 was 15.83.

Inventory turnover measures how fast the company turns over its inventory within a year. Marathon Oil Corp's inventory turnover for the three months ended in Mar. 2017 was 1.47.

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. Marathon Oil Corp's inventory to revenue ratio for the three months ended in Mar. 2017 was 0.17.


Definition

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

Marathon Oil Corp'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
=( (313 + 227) / 2 ) / 2106*365
=270 / 2106*365
=46.79

Marathon Oil Corp'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
=( (227 + 145) / 2 ) / 274*365 / 4
=186 / 274*365 / 4
=61.94

* 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).

Marathon Oil Corp'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
=186/1072*365 / 4
=15.83

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

Marathon Oil Corp'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.

Marathon Oil Corp's Inventory to Revenue for the three months ended in Mar. 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.

Marathon Oil Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DaysInventory 23.7218.7728.23260.43109.0725.4528.6327.3445.2746.79

Marathon Oil Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DaysInventory 30.4444.4245.7551.6544.7884.0549.4839.8839.7761.94
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