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Lowe's Companies Inc (NYSE:LOW)
Days Inventory
104.95 (As of Jan. 2016)

Lowe's Companies Inc's average inventory for the three months ended in Jan. 2016 was $9,946 Mil. Lowe's Companies Inc's cost of goods sold for the three months ended in Jan. 2016 was $8,648 Mil. Hence, Lowe's Companies Inc's days inventory for the three months ended in Jan. 2016 was 104.95.

LOW' s Days Inventory Range Over the Past 10 Years
Min: 81.83   Max: 97.66
Current: 93.13

81.83
97.66

During the past 13 years, Lowe's Companies Inc's highest Days Inventory was 97.66. The lowest was 81.83. And the median was 91.79.

LOW's Days Inventory is ranked lower than
52% of the 887 Companies
in the Global Home Improvement Stores industry.

( Industry Median: 88.17 vs. LOW: 93.13 )

Lowe's Companies Inc's days inventory increased from Jan. 2015 (103.97) to Jan. 2016 (104.95). It might indicate that Lowe's Companies Inc's sales slowed down.

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 Jan. 2016 was 68.57.

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 Jan. 2016 was 0.87.

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. Lowe's Companies Inc's inventory to revenue ratio for the three months ended in Jan. 2016 was 0.75.


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. 2016 is calculated as

Days Inventory (A: Jan. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Jan. 2015 ) + Inventory (A: Jan. 2016 )) / 2 ) / COGS (A: Jan. 2016 )*Days in Period
=( (8911 + 9458) / 2 ) / 38504*365
=9184.5 / 38504*365
=87.06

Lowe's Companies Inc's Days Inventory for the quarter that ended in Jan. 2016 is calculated as:

Days Inventory (Q: Jan. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Oct. 2015 ) + Inventory (Q: Jan. 2016 )) / 2 ) / COGS (Q: Jan. 2016 )*Days in Period
=( (10434 + 9458) / 2 ) / 8648*365 / 4
=9946 / 8648*365 / 4
=104.95

* 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 Jan. 2016 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=9946/13236*365 / 4
=68.57

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 Jan. 2016 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 Jan. 2016 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

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
DaysInventory 81.8385.3390.9997.6695.5192.6293.2292.5989.7887.06

Lowe's Companies Inc Quarterly Data

Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16
DaysInventory 100.65112.12103.6683.2897.11103.9797.7181.5598.06104.95
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