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Rite Aid Corporation (NYSE:RAD)
Days Inventory
57.82 (As of Feb. 2014)

Rite Aid Corporation's inventory for the three months ended in Feb. 2014 was $2,994 Mil. Rite Aid Corporation's cost of goods sold for the three months ended in Feb. 2014 was $4,712 Mil. Hence, Rite Aid Corporation's days inventory for the three months ended in Feb. 2014 was 57.82.

Rite Aid Corporation's days inventory declined from Feb. 2013 (65.14) to Feb. 2014 (57.82).

Inventory can be measured by Days Sales of Inventory (DSI). Rite Aid Corporation's days sales of inventory (DSI) for the three months ended in Feb. 2014 was 41.30.

Inventory turnover measures how fast the company turns over its inventory within a year. Rite Aid Corporation's inventory turnover for the three months ended in Feb. 2014 was 1.57.

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. Rite Aid Corporation's inventory to revenue ratio for the three months ended in Feb. 2014 was 0.45.


Definition

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

Rite Aid Corporation's Days Inventory for the fiscal year that ended in Feb. 2014 is calculated as

Days Inventory=Inventory/Cost of Goods Sold*Days in Period
=2993.948/18202.679*365
=60.03

Rite Aid Corporation's Days Inventory for the quarter that ended in Feb. 2014 is calculated as:

Days Inventory=Inventory/Cost of Goods Sold*Days in Period
=2993.948/4711.743*91
=57.82

* 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).

Rite Aid Corporation's Days Sales of Inventory for the three months ended in Feb. 2014 is calculated as

Days Sales of Inventory (DSI)=Inventory/Revenue*Days in Period
=2993.948/6597.459*91
=41.30

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

Rite Aid Corporation's Inventory Turnover for the three months ended in Feb. 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.

Rite Aid Corporation's Inventory to Revenue for the three months ended in Feb. 2014 is calculated as

Inventory to Revenue=Inventory / Revenue
=2993.948 / 6597.459
=0.45

* 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.

Rite Aid Corporation Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
DaysInventory 69.1067.9867.0781.2366.5362.7362.2359.2763.7160.03

Rite Aid Corporation Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
DaysInventory 66.4553.2458.2660.8563.6765.1463.8165.5865.9257.82
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