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Lowe's Companies Inc (NYSE:LOW)
Days Inventory
97.11 (As of Oct. 2014)

Lowe's Companies Inc's average inventory for the three months ended in Oct. 2014 was $9,539 Mil. Lowe's Companies Inc's cost of goods sold for the three months ended in Oct. 2014 was $8,963 Mil. Hence, Lowe's Companies Inc's days inventory for the three months ended in Oct. 2014 was 97.11.

Lowe's Companies Inc's days inventory declined from Oct. 2013 (100.65) to Oct. 2014 (97.11).

Inventory can be measured by Days Sales of Inventory (DSI). Lowe's Companies Inc's days sales of inventory (DSI) for the three months ended in Oct. 2014 was 63.62.

Inventory turnover measures how fast the company turns over its inventory within a year. Lowe's Companies Inc's inventory turnover for the three months ended in Oct. 2014 was 0.94.

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. Lowe's Companies Inc's inventory to revenue ratio for the three months ended in Oct. 2014 was 0.70.


Definition

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

Lowe's Companies Inc's Days Inventory for the fiscal year that ended in Jan. 2014 is calculated as

Days Inventory (A: Jan. 2014 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Jan. 2013 ) + Inventory (A: Jan. 2014 )) / 2 ) / COGS (A: Jan. 2014 )*Days in Period
=( (8600 + 9127) / 2 ) / 34941*365
=8863.5 / 34941*365
=92.59

Lowe's Companies Inc's Days Inventory for the quarter that ended in Oct. 2014 is calculated as:

Days Inventory (Q: Oct. 2014 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Jul. 2014 ) + Inventory (Q: Oct. 2014 )) / 2 ) / COGS (Q: Oct. 2014 )*Days in Period
=( (9315 + 9762) / 2 ) / 8963*365 / 4
=9538.5 / 8963*365 / 4
=97.11

* 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).

Lowe's Companies 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
=9538.5/13681*365 / 4
=63.62

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

Lowe's Companies 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.

Lowe's Companies 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.

Lowe's Companies Inc Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
DaysInventory 79.6080.9381.8385.3390.9997.6695.5192.6293.2292.59

Lowe's Companies Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
DaysInventory 89.58101.80110.56100.9285.73100.65112.12103.6683.2897.11
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