Total Business Inventories to Sales Pattern (2004 to 2013)

Using data from REL, Supply Chain Digest report the following pattern for total business inventoris to sales:

In terms of the DIO (days of inventory outstanding, i.e. End of Year Inventory Level/[total revenue/365]), the following results are reported:

Top 5 lowest DIO: (1) Restaurants: 8; (2) Airlines:8; (3) Retail Convenience Stores: 9; (4) Retail Wireless Systems: 13; (5) Toys: 14

 

Top 5 highest: (1) Spirits:190; (2) Retail  Auto Parts: 110; (3) Retail: Other Specialty - 89; (4) Construction Equipment: 82; (5) Aerospace/Defense Components: 72.

 

Three best performing sectors (biggest drop in DIO from 2011 to 2012: (1) Construction Equipment: -11.9%; (2) Food Manufacturing: -10.7%; (3) Contract Manufacturers: -7.8%.

 

Three worst performing sectors (largest rise in DIO): (1) Spirits: 10.7%; (2) Electric Utilities: 9.9%; (3) Retail Wireless Services: 9.9%.

 

Using the same exact companies for select years from 2004 to 2012 reveal the following:

A more detailed report on U.S. Inventory Performance for years 2006 to 2012 is as follows:

More detailed results reporting best and worst performing companies in each sector:

Source: SCDigest