Reynolds American (Reynolds American) Days Inventory : 123.18 (As of Mar. 2017)

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What is Reynolds American Days Inventory?

Days Inventory is also known as Days Sales of Inventory (DSI). Reynolds American's Average Total Inventories for the three months ended in Mar. 2017 was $1,619 Mil. Reynolds American's Cost of Goods Sold for the three months ended in Mar. 2017 was $1,199 Mil. Hence, Reynolds American's Days Inventory for the three months ended in Mar. 2017 was 123.18.

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

RAI's Days Inventory is not ranked ^*
in the Tobacco Products industry.
Industry Median: 126.03
* Ranked among companies with meaningful Days Inventory only.

Reynolds American's Days Inventory declined from Mar. 2016 (132.84) to Mar. 2017 (123.18).

Inventory Turnover measures how fast the company turns over its inventory within a year. Reynolds American's Inventory Turnover for the three months ended in Mar. 2017 was 0.74.

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. Reynolds American's Inventory-to-Revenue for the three months ended in Mar. 2017 was 0.55.

Reynolds American Days Inventory Historical Data

The historical data trend for Reynolds American'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.

* Premium members only.

Reynolds American Days Inventory Chart

Reynolds American Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Days Inventory

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82.40

104.75

108.29

117.37

127.38

Reynolds American Quarterly Data
	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17
Days Inventory	Get a 7-Day Free Trial															132.84	114.47	120.68	122.31	123.18

Competitive Comparison of Reynolds American's Days Inventory

For the Tobacco subindustry, Reynolds American'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.

Reynolds American's Days Inventory Distribution in the Tobacco Products Industry

For the Tobacco Products industry and Consumer Defensive sector, Reynolds American's Days Inventory distribution charts can be found below:

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

Reynolds American Days Inventory Calculation

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

Reynolds American's Days Inventory for the fiscal year that ended in Dec. 2016 is calculated as

	Days Inventory (A: Dec. 2016 )
=	Average Total Inventories					/	Cost of Goods Sold	*	Days in Period
=	( (Total Inventories (A: Dec. 2015 )	+	Total Inventories (A: Dec. 2016 ))	/	count )	/	Cost of Goods Sold (A: Dec. 2016 )	*	Days in Period
=	( (1734	+	1645)	/	2 )	/	4841	*	365
=	1689.5					/	4841	*	365
=	127.38

Reynolds American'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: Dec. 2016 )	+	Total Inventories (Q: Mar. 2017 ))	/	count )	/	Cost of Goods Sold (Q: Mar. 2017 )	*	Days in Period
=	( (1645	+	1592)	/	2 )	/	1199	*	365 / 4
=	1618.5					/	1199	*	365 / 4
=	123.18

Reynolds American (NYSE:RAI) 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.

Reynolds American's Inventory Turnover for the three months ended in Mar. 2017 is calculated as

Inventory Turnover	=	Cost of Goods Sold	/	Average Total Inventories
	=	1199	/	1618.5
	=	0.74

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.

Reynolds American's Inventory to Revenue for the three months ended in Mar. 2017 is calculated as

Inventory-to-Revenue	=	Average Total Inventories	/	Revenue
	=	1618.5	/	2949
	=	0.55

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.

Reynolds American Days Inventory Related Terms

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

Reynolds American (Reynolds American) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Tobacco Products » Reynolds American Inc (NYSE:RAI) » Definitions » Days Inventory

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.reynoldsamerican.com

Reynolds American controls roughly one third of the U.S. cigarette market and is the second-largest domestic cigarette manufacturer behind Altria. Its brands include Camel, Pall Mall, and Newport. Reynolds also owns the Grizzly and Kodiak smokeless tobacco brands. Another subsidiary, Santa Fe Natural Tobacco, manufactures superpremium Natural American Spirit cigarettes. In 2013, Reynolds entered the electronic cigarette market with its Vuse brand, which captured a significant share of this small but growing market.

Executives

John J Zillmer	director	ARAMARK CORP, 1101 MARKET ST, PHILADELPHIA PA 19107
Debra Ann Crew	officer: President and CEO	STANLEY BLACK & DECKER, INC., 1000 STANLEY DRIVE, NEW BRITAIN CT 06053
Ronald S Rolfe	director	825 8TH AVENUE, 38TH FLOOR, NEW YORK NY 10019
Nowell Lionel L Iii	director	401 NORTH MAIN STREET, WINSTON-SALEM NC 27101
Holly K Koeppel	director	401 NORTH MAIN STREET, WINSTON-SALEM NC 27101
Susan M. Cameron	director	C/O TUPPERWARE BRANDS CORP, PO BOX 2353, ORLANDO FL 32802-2353
Murray S Kessler	director	714 GREEN VALLEY ROAD, GREENSBORO NC 27408
Nana Mensah	director	1301 AVENUE OF THE AMERICAS, NEW YORK NY 10019
Thomas C Wajnert	director	401 NORTH MAIN STREET, WINSTON SALEM NC 27102
Richard E Thornburgh	director	401 N. MAIN STREET, WINSTON-SALEM NC 27101
Nicholas V Scheele	director	FORD MOTOR COMPANY, ONE AMERICAN ROAD, DEARBORN MI 48126
Betsy S Atkins	director
Joseph P Viviano	director	4351 GULF SHORE BLVD. N, 17N LERIVAGE, NAPLES FL 34103
Monteiro De Castro Antonio	director	BRITISH AMERICAN TOBACCO - GLOBE HOUSE, 4 TEMPLE PLACE, LONDON X0 WC2R2PG
Chain John T Jr	director	401 N. MAIN ST., C/O RJ REYNOLDS TOBACCO HOLDINGS, WINSTON SALEM NC 27102