Torotrak (LSE:TRK) Days Inventory: 180.94 (As of Mar. 2017) — 133% Above Median

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What is Torotrak Days Inventory?

Torotrak LSE:TRK Days Inventory is 180.94 as of Mar. 2017, which is 133% above its 10-year median of 77.78. The stock has 4 warning signs investors should review.

Days Inventory is also known as Days Sales of Inventory (DSI). Torotrak's Average Total Inventories for the six months ended in Mar. 2017 was £0.12 Mil. Torotrak's Cost of Goods Sold for the six months ended in Mar. 2017 was £0.12 Mil. Hence, Torotrak's Days Inventory for the six months ended in Mar. 2017 was 180.94.

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

LSE:TRK' s Days Inventory Range Over the Past 10 Years
Min: 18.06   Med: 77.78   Max: 146.8
Current: 89.39

During the past 13 years, Torotrak's highest Days Inventory was 146.80. The lowest was 18.06. And the median was 77.78.

LSE:TRK's Days Inventory is not ranked
in the Vehicles & Parts industry.
Industry Median: 80.33 vs LSE:TRK: 89.39

Torotrak's Days Inventory increased from Mar. 2016 (81.64) to Mar. 2017 (180.94). It might indicate that Torotrak's sales slowed down.

Inventory Turnover measures how fast the company turns over its inventory within a year. Torotrak's Inventory Turnover for the six months ended in Mar. 2017 was 1.01.

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. Torotrak's Inventory-to-Revenue for the six months ended in Mar. 2017 was 0.22.


Torotrak  (LSE:TRK) 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.

Torotrak's Inventory Turnover for the six months ended in Mar. 2017 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.

Torotrak's Inventory to Revenue for the six months ended in Mar. 2017 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.


Torotrak Days Inventory Related Terms


Torotrak Days Inventory Historical Data

* Premium members only.

The historical data trend for Torotrak'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.

Torotrak Days Inventory Chart

Torotrak Annual Data
Trend Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17
Days Inventory
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.84 106.40 59.88 97.29 78.38

Torotrak Semi-Annual Data
Sep07 Mar08 Sep08 Mar09 Sep09 Mar10 Sep10 Mar11 Sep11 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17
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 Premium Member Only Premium Member Only Premium Member Only 50.83 118.88 81.64 68.61 180.94

LSE:TRK vs DLPH: Days Inventory Comparison

For the Auto Parts subindustry, Torotrak'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.


Torotrak Days Inventory vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Torotrak's Days Inventory distribution charts can be found below:

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



Torotrak Days Inventory Calculation

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

Torotrak's Days Inventory for the fiscal year that ended in Mar. 2017 is calculated as

Days Inventory (A: Mar. 2017 )
=Average Total Inventories / Cost of Goods Sold*Days in Period
=( (Total Inventories (A: Mar. 2016 ) + Total Inventories (A: Mar. 2017 )) / count ) / Cost of Goods Sold (A: Mar. 2017 )*Days in Period
=( (0.221 + 0.056) / 2 ) / 0.645*365
=0.1385 / 0.645*365
=78.38

Torotrak's Days Inventory for the quarter that ended in Mar. 2017 is calculated as:

Days Inventory (Q: Mar. 2017 )
=Average Total Inventories / Cost of Goods Sold*Days in Period
=( (Total Inventories (Q: Sep. 2016 ) + Total Inventories (Q: Mar. 2017 )) / count ) / Cost of Goods Sold (Q: Mar. 2017 )*Days in Period
=( (0.176 + 0.056) / 2 ) / 0.117*365 / 2
=0.116 / 0.117*365 / 2
=180.94

* 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 180.94 mean?
Torotrak (LSE:TRK) has a Days Inventory of 180.94 as of Mar. 2017. Days inventory represents the average amount of days a company holds inventory before selling it. View historical data on Torotrak and its competitors. This is 133% above median its historical median of 77.78. Over the past decade, Torotrak's Days Inventory has ranged from 18.06 to 146.80.
Is Torotrak's Days Inventory too high?
Torotrak's current Days Inventory of 180.94 is 133% above median its 10-year median of 77.78. Over the past 10 years, this metric has ranged from a low of 18.06 to a high of 146.80. The Vehicles & Parts industry median Days Inventory is 80.33. Torotrak's value of 180.94 is 125.2% above this industry median.
How does Torotrak's Days Inventory compare to DLPH?
Torotrak's Days Inventory of 180.94 can be compared against companies in the Vehicles & Parts industry. The industry median Days Inventory is 80.33. Torotrak's value of 180.94 is 125.2% above this benchmark. Historically, Torotrak's own Days Inventory has ranged from 18.06 to 146.80 over the past decade. While the company's 10-year median is 77.78 vs. the industry median of 80.33, Torotrak has consistently been above 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 a Vehicles & Parts company?
The median Days Inventory among Vehicles & Parts companies is 80.33, based on 1,291 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. Torotrak's current Days Inventory of 180.94 is 125.2% above 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 Torotrak and its competitors. For the Vehicles & Parts industry, the median Days Inventory is 80.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Torotrak's current Days Inventory is 180.94, which is 133% above median its own 10-year median of 77.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Torotrak stock overvalued right now?
Torotrak (LSE:TRK) has a current Days Inventory of 180.94. The current Days Inventory is 180.94, which is 133% above median its 10-year median of 77.78 and 125.2% above the Vehicles & Parts industry median of 80.33. 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 Torotrak (LSE:TRK), the current Days Inventory is 180.94 as of Mar. 2017. 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.

Torotrak Business Description

Comparable Companies LSE:SCELSE:AUTGLSE:GKNDLPH
Address 1 Aston Way, Leyland, Lancs, GBR, PR26 7UX
Torotrak PLC is a technology development company. It designs, develops and offers technologies that are focused on products, such as infinitely variable transmissions (IVTs), variable drive superchargers (V-Charge) and mechanical kinetic energy recovery systems (Flybrid). The company operates its business through the following segments, Licence Agreements, Engineering Services, and Development Activities, Including Research and The Creation of New Intellectual Property. Its Flybrid technology relates to high-speed flywheels which are used vehicles, V-Charge technology is used to control emissions in gasoline and diesel engines, and IVTs improves the performance and fuel economy of the vehicle.