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# MPLX LP Inventory Turnover

: 10.18 (As of Sep. 2019)
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Inventory turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. MPLX LP's Cost of Goods Sold for the three months ended in Sep. 2019 was \$921 Mil. MPLX LP's Total Inventories for the quarter that ended in Sep. 2019 was \$91 Mil. MPLX LP's inventory turnover for the quarter that ended in Sep. 2019 was 10.18.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. MPLX LP's Days Inventory for the three months ended in Sep. 2019 was 8.97.

Total Inventories can be measured by Days Sales of Inventory (DSI). MPLX LP's days sales of inventory (DSI) for the three months ended in Sep. 2019 was 3.84.

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. MPLX LP's Inventory-to-Revenue for the quarter that ended in Sep. 2019 was 0.04.

## MPLX LP Inventory Turnover Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

 MPLX LP Annual Data Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Inventory Turnover    32.37 14.32 25.43 28.30 39.34

## MPLX LP Inventory Turnover Calculation

MPLX LP's Inventory Turnover for the fiscal year that ended in Dec. 2018 is calculated as

 Inventory Turnover (A: Dec. 2018 ) = Cost of Goods Sold / Total Inventories = Cost of Goods Sold (A: Dec. 2018 ) / ( (Total Inventories (A: Dec. 2017 ) + Total Inventories (A: Dec. 2018 )) / 2 ) = 2793 / ( (65 + 77) / 2 ) = 2793 / 71 = 39.34

MPLX LP's Inventory Turnover for the quarter that ended in Sep. 2019 is calculated as

 Inventory Turnover (Q: Sep. 2019 ) = Cost of Goods Sold / Total Inventories = Cost of Goods Sold (Q: Sep. 2019 ) / ( (Total Inventories (Q: Jun. 2019 ) + Total Inventories (Q: Sep. 2019 )) / 2 ) = 921 / ( (77 + 104) / 2 ) = 921 / 90.5 = 10.18

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

MPLX LP  (NYSE:MPLX) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher inventory turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

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

MPLX LP's Days Inventory for the three months ended in Sep. 2019 is calculated as:

 Days Inventory = Total Inventories (Q: Sep. 2019 ) / Cost of Goods Sold (Q: Sep. 2019 ) * Days in Period = 90.5 / 921 * 365 / 4 = 8.97

2. Total Inventories can be measured by Days Sales of Inventory (DSI).

MPLX LP's Days Sales of Inventory for the three months ended in Sep. 2019 is calculated as:

 Days Sales of Inventory (DSI) = Total Inventories (Q: Sep. 2019 ) / Revenue (Q: Sep. 2019 ) * Days in Period = 90.5 / 2152 * 365 / 4 = 3.84

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.

MPLX LP's Inventory to Revenue for the quarter that ended in Sep. 2019 is calculated as

 Inventory-to-Revenue = Total Inventories (Q: Sep. 2019 ) / Revenue (Q: Sep. 2019 ) = 90.5 / 2152 = 0.04

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate inventory turnover. An average inventory is a better indication.

## MPLX LP Inventory Turnover Headlines

From GuruFocus ###### MPLX LP to Announce 2019 Fourth-Quarter and Full-Year Financial Results Jan. 29

By PRNewswire about MPLX 2019-12-10 15:00:28

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