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Ralph Lauren Corp (NYSE:RL)
Days Inventory
141.96 (As of Dec. 2015)

Ralph Lauren Corp's average inventory for the three months ended in Dec. 2015 was $1,326 Mil. Ralph Lauren Corp's cost of goods sold for the three months ended in Dec. 2015 was $852 Mil. Hence, Ralph Lauren Corp's days inventory for the three months ended in Dec. 2015 was 141.96.

RL' s Days Inventory Range Over the Past 10 Years
Min: 82.95   Max: 116.07
Current: 140.76

82.95
116.07

During the past 13 years, Ralph Lauren Corp's highest Days Inventory was 116.07. The lowest was 82.95. And the median was 95.62.

RL's Days Inventory is ranked lower than
65% of the 698 Companies
in the Global Apparel Manufacturing industry.

( Industry Median: 105.96 vs. RL: 140.76 )

Ralph Lauren Corp's days inventory increased from Dec. 2014 (130.66) to Dec. 2015 (141.96). It might indicate that Ralph Lauren Corp's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Ralph Lauren Corp's days sales of inventory (DSI) for the three months ended in Dec. 2015 was 62.15.

Inventory turnover measures how fast the company turns over its inventory within a year. Ralph Lauren Corp's inventory turnover for the three months ended in Dec. 2015 was 0.64.

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. Ralph Lauren Corp's inventory to revenue ratio for the three months ended in Dec. 2015 was 0.68.


Definition

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

Ralph Lauren Corp's Days Inventory for the fiscal year that ended in Mar. 2015 is calculated as

Days Inventory (A: Mar. 2015 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Mar. 2014 ) + Inventory (A: Mar. 2015 )) / 2 ) / COGS (A: Mar. 2015 )*Days in Period
=( (1020 + 1042) / 2 ) / 3242*365
=1031 / 3242*365
=116.07

Ralph Lauren Corp's Days Inventory for the quarter that ended in Dec. 2015 is calculated as:

Days Inventory (Q: Dec. 2015 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Sep. 2015 ) + Inventory (Q: Dec. 2015 )) / 2 ) / COGS (Q: Dec. 2015 )*Days in Period
=( (1380 + 1271) / 2 ) / 852*365 / 4
=1325.5 / 852*365 / 4
=141.96

* 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).

Ralph Lauren Corp's Days Sales of Inventory for the three months ended in Dec. 2015 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=1325.5/1946*365 / 4
=62.15

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

Ralph Lauren Corp's Inventory Turnover for the three months ended in Dec. 2015 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.

Ralph Lauren Corp's Inventory to Revenue for the three months ended in Dec. 2015 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.

Ralph Lauren Corp Annual Data

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
DaysInventory 96.9394.3184.8082.9590.3093.9998.44113.70111.36116.07

Ralph Lauren Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DaysInventory 124.52126.21119.34150.94130.84130.66122.23161.79141.08141.96
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