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Pier 1 Imports Inc (NYSE:PIR)
Days Inventory
171.23 (As of Nov. 2014)

Pier 1 Imports Inc's average inventory for the three months ended in Nov. 2014 was $525 Mil. Pier 1 Imports Inc's cost of goods sold for the three months ended in Nov. 2014 was $280 Mil. Hence, Pier 1 Imports Inc's days inventory for the three months ended in Nov. 2014 was 171.23.

Pier 1 Imports Inc's days inventory increased from Nov. 2013 (151.44) to Nov. 2014 (171.23). It might indicate that Pier 1 Imports Inc's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Pier 1 Imports Inc's days sales of inventory (DSI) for the three months ended in Nov. 2014 was 98.81.

Inventory turnover measures how fast the company turns over its inventory within a year. Pier 1 Imports Inc's inventory turnover for the three months ended in Nov. 2014 was 0.53.

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. Pier 1 Imports Inc's inventory to revenue ratio for the three months ended in Nov. 2014 was 1.08.


Definition

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

Pier 1 Imports Inc's Days Inventory for the fiscal year that ended in Feb. 2014 is calculated as

Days Inventory (A: Feb. 2014 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Feb. 2013 ) + Inventory (A: Feb. 2014 )) / 2 ) / COGS (A: Feb. 2014 )*Days in Period
=( (356.053 + 377.65) / 2 ) / 1026.18*365
=366.8515 / 1026.18*365
=130.48

Pier 1 Imports Inc's Days Inventory for the quarter that ended in Nov. 2014 is calculated as:

Days Inventory (Q: Nov. 2014 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Aug. 2014 ) + Inventory (Q: Nov. 2014 )) / 2 ) / COGS (Q: Nov. 2014 )*Days in Period
=( (513.752 + 535.532) / 2 ) / 279.588*365 / 4
=524.642 / 279.588*365 / 4
=171.23

* 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).

Pier 1 Imports Inc's Days Sales of Inventory for the three months ended in Nov. 2014 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=524.642/484.501*365 / 4
=98.81

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

Pier 1 Imports Inc's Inventory Turnover for the three months ended in Nov. 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.

Pier 1 Imports Inc's Inventory to Revenue for the three months ended in Nov. 2014 is calculated as

Inventory to Revenue=Average Inventory / Revenue
=524.642 / 484.501
=1.08

* 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.

Pier 1 Imports Inc Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
DaysInventory 120.34114.12115.77131.35138.81135.16135.67131.17128.75130.48

Pier 1 Imports Inc Quarterly Data

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
DaysInventory 159.28160.53118.98148.44161.20151.44122.14144.36166.01171.23
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