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GuruFocus has detected 2 Warning Signs with Best Buy Co Inc $BBY.
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Best Buy Co Inc (NYSE:BBY)
Days Inventory
48.87 (As of Jan. 2017)

Best Buy Co Inc's average inventory for the three months ended in Jan. 2017 was $5,598 Mil. Best Buy Co Inc's cost of goods sold for the three months ended in Jan. 2017 was $10,452 Mil. Hence, Best Buy Co Inc's days inventory for the three months ended in Jan. 2017 was 48.87.

BBY' s Days Inventory Range Over the Past 10 Years
Min: 50.23   Max: 76.81
Current: 63.04

50.23
76.81

During the past 13 years, Best Buy Co Inc's highest Days Inventory was 76.81. The lowest was 50.23. And the median was 60.95.

BBY's Days Inventory is ranked higher than
64% of the 792 Companies
in the Global Specialty Retail industry.

( Industry Median: 91.88 vs. BBY: 63.04 )

Best Buy Co Inc's days inventory declined from Jan. 2016 (50.03) to Jan. 2017 (48.87).

Inventory can be measured by Days Sales of Inventory (DSI). Best Buy Co Inc's days sales of inventory (DSI) for the three months ended in Jan. 2017 was 37.89.

Inventory turnover measures how fast the company turns over its inventory within a year. Best Buy Co Inc's inventory turnover for the three months ended in Jan. 2017 was 1.87.

Inventory to revenue ratio 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. Best Buy Co Inc's inventory to revenue ratio for the three months ended in Jan. 2017 was 0.42.


Definition

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

Best Buy Co Inc's Days Inventory for the fiscal year that ended in Jan. 2017 is calculated as

Days Inventory (A: Jan. 2017 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Jan. 2016 ) + Inventory (A: Jan. 2017 )) / 2 ) / COGS (A: Jan. 2017 )*Days in Period
=( (5051 + 4864) / 2 ) / 29963*365
=4957.5 / 29963*365
=60.39

Best Buy Co Inc's Days Inventory for the quarter that ended in Jan. 2017 is calculated as:

Days Inventory (Q: Jan. 2017 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Oct. 2016 ) + Inventory (Q: Jan. 2017 )) / 2 ) / COGS (Q: Jan. 2017 )*Days in Period
=( (6331 + 4864) / 2 ) / 10452*365 / 4
=5597.5 / 10452*365 / 4
=48.87

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

An increase of Days Inventory may indicate the company's sales slowed.

1. Inventory can be measured by Days Sales of Inventory (DSI).

Best Buy Co Inc's Days Sales of Inventory for the three months ended in Jan. 2017 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=5597.5/13482*365 / 4
=37.89

2. Inventory Turnover measures how fast the company turns over its inventory within a year.

Best Buy Co Inc's Inventory Turnover for the three months ended in Jan. 2017 is calculated as

3. 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.

Best Buy Co Inc's Inventory to Revenue for the three months ended in Jan. 2017 is calculated as

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.


Related Terms

Cost of Goods Sold, Inventory, Revenue, Inventory Turnover, Inventory to Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Best Buy Co Inc Annual Data

Feb08Feb09Feb10Feb11Feb12Jan13Jan14Jan15Jan16Jan17
DaysInventory 52.3150.7650.2355.8461.5676.8169.8661.5361.5160.39

Best Buy Co Inc Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
DaysInventory 81.8849.2670.6270.4279.2250.0370.7867.8876.0648.87
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