Max Petroleum (LSE:MXP) Days Inventory: 27.93 (As of Sep. 2014) — 81% Below Median


What is Max Petroleum Days Inventory?

Max Petroleum LSE:MXP Days Inventory is 27.93 as of Sep. 2014, which is 81% below its 10-year median of 148.72. The stock has 6 warning signs investors should review.

Days Inventory is also known as Days Sales of Inventory (DSI). Max Petroleum's Average Total Inventories for the six months ended in Sep. 2014 was £3.53 Mil. Max Petroleum's Cost of Goods Sold for the six months ended in Sep. 2014 was £23.07 Mil. Hence, Max Petroleum's Days Inventory for the six months ended in Sep. 2014 was 27.93.

The historical rank and industry rank for Max Petroleum's Days Inventory or its related term are showing as below:

LSE:MXP' s Days Inventory Range Over the Past 10 Years
Min: 22.26   Med: 148.72   Max: 913.11
Current: 26.25

During the past 9 years, Max Petroleum's highest Days Inventory was 913.11. The lowest was 22.26. And the median was 148.72.

LSE:MXP's Days Inventory is not ranked
in the Oil & Gas industry.
Industry Median: 31.01 vs LSE:MXP: 26.25

Max Petroleum's Days Inventory increased from Sep. 2013 (23.56) to Sep. 2014 (27.93). It might indicate that Max Petroleum's sales slowed down.

Inventory Turnover measures how fast the company turns over its inventory within a year. Max Petroleum's Inventory Turnover for the six months ended in Sep. 2014 was 6.53.

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. Max Petroleum's Inventory-to-Revenue for the six months ended in Sep. 2014 was 0.11.


Max Petroleum  (LSE:MXP) 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.

Max Petroleum's Inventory Turnover for the six months ended in Sep. 2014 is calculated as

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.

Max Petroleum's Inventory to Revenue for the six months ended in Sep. 2014 is calculated as

* 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.


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.


Max Petroleum Days Inventory Related Terms


Max Petroleum Days Inventory Historical Data

* Premium members only.

The historical data trend for Max Petroleum'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.

Max Petroleum Days Inventory Chart

Max Petroleum Annual Data
Trend Mar06 Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14
Days Inventory
Get a 7-Day Free Trial Premium Member Only 161.41 129.21 139.67 42.10 23.22

Max Petroleum Semi-Annual Data
Sep06 Mar07 Sep07 Mar08 Sep08 Mar09 Sep09 Mar10 Sep10 Mar11 Sep11 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14
Days Inventory Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 59.85 37.45 23.56 24.68 27.93

Max Petroleum Days Inventory Competitor Comparison

For the Oil & Gas E&P subindustry, Max Petroleum'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.


Max Petroleum Days Inventory vs Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Max Petroleum's Days Inventory distribution charts can be found below:

* The bar in red indicates where Max Petroleum's Days Inventory falls into.



Max Petroleum Days Inventory Calculation

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

Max Petroleum's Days Inventory for the fiscal year that ended in Mar. 2014 is calculated as

Days Inventory (A: Mar. 2014 )
=Average Total Inventories / Cost of Goods Sold*Days in Period
=( (Total Inventories (A: Mar. 2013 ) + Total Inventories (A: Mar. 2014 )) / count ) / Cost of Goods Sold (A: Mar. 2014 )*Days in Period
=( (2.728 + 3.314) / 2 ) / 47.483*365
=3.021 / 47.483*365
=23.22

Max Petroleum's Days Inventory for the quarter that ended in Sep. 2014 is calculated as:

Days Inventory (Q: Sep. 2014 )
=Average Total Inventories / Cost of Goods Sold*Days in Period
=( (Total Inventories (Q: Mar. 2014 ) + Total Inventories (Q: Sep. 2014 )) / count ) / Cost of Goods Sold (Q: Sep. 2014 )*Days in Period
=( (3.314 + 3.746) / 2 ) / 23.066*365 / 2
=3.53 / 23.066*365 / 2
=27.93

* 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.

Frequently Asked Questions Learn more about Days Inventory →
What does a Days Inventory of 27.93 mean?
Max Petroleum (LSE:MXP) has a Days Inventory of 27.93 as of Sep. 2014. Days inventory represents the average amount of days a company holds inventory before selling it. View historical data on Max Petroleum and its competitors. This is 81% below median its historical median of 148.72. Over the past decade, Max Petroleum's Days Inventory has ranged from 22.26 to 913.11.
Is Max Petroleum's Days Inventory too high?
Max Petroleum's current Days Inventory of 27.93 is 81% below median its 10-year median of 148.72. Over the past 10 years, this metric has ranged from a low of 22.26 to a high of 913.11. The Oil & Gas industry median Days Inventory is 31.01. Max Petroleum's value of 27.93 is 9.9% below this industry median.
How does Max Petroleum's Days Inventory compare to competitors?
Max Petroleum's Days Inventory of 27.93 can be compared against companies in the Oil & Gas industry. The industry median Days Inventory is 31.01. Max Petroleum's value of 27.93 is 9.9% below this benchmark. Historically, Max Petroleum's own Days Inventory has ranged from 22.26 to 913.11 over the past decade. While the company's 10-year median is 148.72 vs. the industry median of 31.01, Max Petroleum has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Days Inventory for an Oil & Gas company?
The median Days Inventory among Oil & Gas companies is 31.01, based on 687 companies in the industry. Companies in the top quartile (top 25%) have a Days Inventory significantly above this median, while those in the bottom quartile fall well below. However, Days Inventory should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Max Petroleum's current Days Inventory of 27.93 is 9.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Days Inventory mean?
A high Days Inventory can signal that a stock is expensive relative to its fundamentals. Days inventory represents the average amount of days a company holds inventory before selling it. View historical data on Max Petroleum and its competitors. For the Oil & Gas industry, the median Days Inventory is 31.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Max Petroleum's current Days Inventory is 27.93, which is 81% below median its own 10-year median of 148.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Max Petroleum stock overvalued right now?
Max Petroleum (LSE:MXP) has a current Days Inventory of 27.93. The current Days Inventory is 27.93, which is 81% below median its 10-year median of 148.72 and 9.9% below the Oil & Gas industry median of 31.01. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Days Inventory calculated?
Days Inventory is calculated from a company's financial statements. For Max Petroleum (LSE:MXP), the current Days Inventory is 27.93 as of Sep. 2014. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Max Petroleum Business Description

Industry EnergyOil & Gas
Address 4th Floor, Ergon House, Dean Bradley Street, London, GBR, SW1P 2AL
Max Petroleum Plc is an independent oil and gas exploration and production company. The company is engaged in the business of exploration, development, and production of oil and gas assets within the Republic of Kazakhstan. The group owns the exploration and production rights to the Blocks A&E License, which comprises two onshore blocks extending over 12,455 km2 in the Pre-Caspian Basin in Western Kazakhstan.