Covidien (FRA:6COP) Days Inventory : 121.25 (As of Dec. 2014)

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What is Covidien Days Inventory?

Days Inventory is also known as Days Sales of Inventory (DSI). Covidien's Average Total Inventories for the three months ended in Dec. 2014 was €1,123 Mil. Covidien's Cost of Goods Sold for the three months ended in Dec. 2014 was €845 Mil. Hence, Covidien's Days Inventory for the three months ended in Dec. 2014 was 121.25.

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

FRA:6COP' s Days Inventory Range Over the Past 10 Years
Min: 44.38 Med: 104.71 Max: 152.01
Current: 119.42

During the past 13 years, Covidien's highest Days Inventory was 152.01. The lowest was 44.38. And the median was 104.71.

FRA:6COP's Days Inventory is not ranked
in the Medical Devices & Instruments industry.
Industry Median: 189.73 vs FRA:6COP: 119.42

Covidien's Days Inventory increased from Dec. 2013 (116.15) to Dec. 2014 (121.25). It might indicate that Covidien's sales slowed down.

Inventory Turnover measures how fast the company turns over its inventory within a year. Covidien's Inventory Turnover for the three months ended in Dec. 2014 was 0.75.

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. Covidien's Inventory-to-Revenue for the three months ended in Dec. 2014 was 0.52.

Covidien Days Inventory Historical Data

The historical data trend for Covidien'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.

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Covidien Days Inventory Chart

Covidien Annual Data

Trend

Sep05

Sep06

Sep07

Sep08

Sep09

Sep10

Sep11

Sep12

Sep13

Sep14

Days Inventory

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99.64

108.21

147.59

140.30

114.22

Covidien Quarterly Data
	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14
Days Inventory	Get a 7-Day Free Trial															116.15	117.70	116.62	117.57	121.25

Competitive Comparison of Covidien's Days Inventory

For the Medical Instruments & Supplies subindustry, Covidien'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.

Covidien's Days Inventory Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Covidien's Days Inventory distribution charts can be found below:

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

Covidien Days Inventory Calculation

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

Covidien's Days Inventory for the fiscal year that ended in Sep. 2014 is calculated as

	Days Inventory (A: Sep. 2014 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (A: Sep. 2013 )	+	Total Inventories (A: Sep. 2014 ))	/	count )	/	Cost of Goods Sold (A: Sep. 2014 )	*	Days in Period
=	( (1011.296	+	1092.608)	/	2 )	/	3361.632	*	365
=	1051.952					/	3361.632	*	365
=	114.22

Covidien's Days Inventory for the quarter that ended in Dec. 2014 is calculated as:

	Days Inventory (Q: Dec. 2014 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (Q: Sep. 2014 )	+	Total Inventories (Q: Dec. 2014 ))	/	count )	/	Cost of Goods Sold (Q: Dec. 2014 )	*	Days in Period
=	( (1092.608	+	1153.242)	/	2 )	/	845.062	*	365 / 4
=	1122.925					/	845.062	*	365 / 4
=	121.25

Covidien (FRA:6COP) 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.

Covidien's Inventory Turnover for the three months ended in Dec. 2014 is calculated as

Inventory Turnover	=	Cost of Goods Sold	/	Average Total Inventories
	=	845.062	/	1122.925
	=	0.75

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.

Covidien's Inventory to Revenue for the three months ended in Dec. 2014 is calculated as

Inventory-to-Revenue	=	Average Total Inventories	/	Revenue
	=	1122.925	/	2178.346
	=	0.52

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.

Covidien Days Inventory Related Terms

Thank you for viewing the detailed overview of Covidien's Days Inventory provided by GuruFocus.com. Please click on the following links to see related term pages.

Covidien (FRA:6COP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Covidien PLC (FRA:6COP) » Definitions » Days Inventory

Comparable Companies

Traded in Other Exchanges

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Address

Website

http://www.covidien.com

Covidien PLC formerly known as Covidien Ltd. was incorporated in Bermuda in 2000 as a wholly-owned subsidiary of Tyco International Ltd. In June 2009, Covidien plc announced that one of its subsidiaries has completed the acquisition of VNUS Medical Technologies, Inc. In September 2009, the Company completed the acquisition of Power Medical Interventions Inc. In November 2009, the Company completed the acquisition of Aspect Medical Systems Inc. The Company is engaged in the development, manufacture and sale of healthcare products for use in clinical and home settings. Its products are found in almost every hospital in the United States. Its mission is to create and deliver innovative healthcare solutions, developed in ethical collaboration with medical professionals. It operates through two segments: Medical Devices and Medical Supplies. The Medical Devices segment includes the development, manufacture and sale of endomechanical instruments, energy devices, soft tissue repair products, vascular products, oximetry and monitoring products, airway and ventilation products, and other medical products. The Medical Supplies segment includes the development, manufacture and sale of nursing care products, medical surgical products, SharpSafety products and original equipment manufacturer products. Competitors of Medical Devices segment include diversified healthcare companies, such as Johnson & Johnson, Boston Scientific, Baxter and C.R. Bard. Its Nursing Care products include: Curity and Kerlix and Medical Surgical products include: Medi-Trace. The Company holds more than 13,000 patents and have over 10,500 patent applications pending in the United States and in certain other countries that relate to aspects of the technology used in many of its products. The Company is subject to numerous federal, state and local environmental protection and health and safety laws and regulations both within and outside the United States.

Covidien (FRA:6COP) Headlines

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