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GuruFocus has detected 6 Warning Signs with Pier 1 Imports Inc $PIR.
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Pier 1 Imports Inc (NYSE:PIR)
Days Inventory
125.02 (As of Feb. 2017)

Pier 1 Imports Inc's average inventory for the three months ended in Feb. 2017 was $440 Mil. Pier 1 Imports Inc's cost of goods sold for the three months ended in Feb. 2017 was $321 Mil. Hence, Pier 1 Imports Inc's days inventory for the three months ended in Feb. 2017 was 125.02.

PIR' s Days Inventory Range Over the Past 10 Years
Min: 128.75   Max: 140.05
Current: 141.28

128.75
140.05

During the past 13 years, Pier 1 Imports Inc's highest Days Inventory was 140.05. The lowest was 128.75. And the median was 133.26.

PIR's Days Inventory is ranked lower than
73% of the 868 Companies
in the Global Specialty Retail industry.

( Industry Median: 89.83 vs. PIR: 141.28 )

Pier 1 Imports Inc's days inventory increased from Feb. 2016 (120.04) to Feb. 2017 (125.02). 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 Feb. 2017 was 76.06.

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 Feb. 2017 was 0.73.

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 Feb. 2017 was 0.83.


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. 2017 is calculated as

Days Inventory (A: Feb. 2017 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Feb. 2016 ) + Inventory (A: Feb. 2017 )) / 2 ) / COGS (A: Feb. 2017 )*Days in Period
=( (405.859 + 400.976) / 2 ) / 1131.138*365
=403.4175 / 1131.138*365
=130.18

Pier 1 Imports Inc's Days Inventory for the quarter that ended in Feb. 2017 is calculated as:

Days Inventory (Q: Feb. 2017 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Nov. 2016 ) + Inventory (Q: Feb. 2017 )) / 2 ) / COGS (Q: Feb. 2017 )*Days in Period
=( (479.832 + 400.976) / 2 ) / 321.44*365 / 4
=440.404 / 321.44*365 / 4
=125.02

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 Feb. 2017 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=440.404/528.352*365 / 4
=76.06

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 Feb. 2017 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 Feb. 2017 is calculated as

Inventory to Revenue=Average Inventory / Revenue
=440.404 / 528.352
=0.83

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Pier 1 Imports Inc Annual Data

Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16Feb17
DaysInventory 131.35138.81135.16135.67131.17128.75130.48140.05135.99130.18

Pier 1 Imports Inc Quarterly Data

Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16Feb17
DaysInventory 171.23140.60167.34168.43160.84120.04140.05157.88156.89125.02
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