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JC Penney Co Inc (NYSE:JCP)
Days Inventory
161.71 (As of Oct. 2014)

JC Penney Co Inc's average inventory for the three months ended in Oct. 2014 was $3,103 Mil. JC Penney Co Inc's cost of goods sold for the three months ended in Oct. 2014 was $1,751 Mil. Hence, JC Penney Co Inc's days inventory for the three months ended in Oct. 2014 was 161.71.

JC Penney Co Inc's days inventory increased from Oct. 2013 (160.67) to Oct. 2014 (161.71). It might indicate that JC Penney Co Inc's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). JC Penney Co Inc's days sales of inventory (DSI) for the three months ended in Oct. 2014 was 102.44.

Inventory turnover measures how fast the company turns over its inventory within a year. JC Penney Co Inc's inventory turnover for the three months ended in Oct. 2014 was 0.56.

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. JC Penney Co Inc's inventory to revenue ratio for the three months ended in Oct. 2014 was 1.12.


Definition

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

JC Penney Co Inc's Days Inventory for the fiscal year that ended in Jan. 2014 is calculated as

Days Inventory
=( (Inventory (A: Jan. 2013 )+Inventory (A: Jan. 2014 ))/ 2 )/Cost of Goods Sold*Days in Period
=( (2341+2935)/ 2 )/8367*365
=2638/8367*365
=115.08

JC Penney Co Inc's Days Inventory for the quarter that ended in Oct. 2014 is calculated as:

Days Inventory
=( (Inventory (Q: Jul. 2014 )+Inventory (Q: Oct. 2014 ))/ 2 )/Cost of Goods Sold*Days in Period
=( (2848+3358)/ 2 )/1751*365 / 4
=3103/1751*365 / 4
=161.71

* 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).

JC Penney Co Inc's Days Sales of Inventory for the three months ended in Oct. 2014 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=3103/2764*365 / 4
=102.44

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

JC Penney Co Inc's Inventory Turnover for the three months ended in Oct. 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.

JC Penney Co Inc's Inventory to Revenue for the three months ended in Oct. 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.

JC Penney Co Inc Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
DaysInventory 101.68101.6499.88105.42108.83107.71105.40101.30107.57115.08

JC Penney Co Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
DaysInventory 137.40146.8187.91128.62144.78160.67112.58140.40144.77161.71
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