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Best Buy Co Inc (NYSE:BBY)
Days Inventory
72.08 (As of Jul. 2014)

Best Buy Co Inc's average inventory for the three months ended in Jul. 2014 was $5,419 Mil. Best Buy Co Inc's cost of goods sold for the three months ended in Jul. 2014 was $6,841 Mil. Hence, Best Buy Co Inc's days inventory for the three months ended in Jul. 2014 was 72.08.

Best Buy Co Inc's days inventory declined from Jul. 2013 (72.83) to Jul. 2014 (72.08).

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 Jul. 2014 was 55.43.

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 Jul. 2014 was 1.26.

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 Jul. 2014 was 0.61.


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. 2014 is calculated as

Days Inventory
=( (Inventory (A: Feb. 2012 )+Inventory (A: Jan. 2014 ))/ 2 )/Cost of Goods Sold*Days in Period
=( (5731+5376)/ 2 )/32720*365
=5553.5/32720*365
=61.95

Best Buy Co Inc's Days Inventory for the quarter that ended in Jul. 2014 is calculated as:

Days Inventory
=( (Inventory (Q: Apr. 2014 )+Inventory (Q: Jul. 2014 ))/ 2 )/Cost of Goods Sold*Days in Period
=( (5255+5583)/ 2 )/6841*91
=5419/6841*91
=72.08

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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 Jul. 2014 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=5419/8896*91
=55.43

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 Jul. 2014 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 Jul. 2014 is calculated as

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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 own currency.

Best Buy Co Inc Annual Data

Feb04Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Jan14
DaysInventory 45.7747.5748.8549.4952.3150.7649.7855.8455.6561.95

Best Buy Co Inc Quarterly Data

Feb12Apr12Jul12Oct12Apr13Jul13Oct13Jan14Apr14Jul14
DaysInventory 55.2361.6770.4791.9586.1872.8378.5448.9368.9572.08
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