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rue21 Inc (NAS:RUE)
Days Inventory
106.94 (As of Jul. 2013)

rue21 Inc's average inventory for the three months ended in Jul. 2013 was \$175.5 Mil. rue21 Inc's cost of goods sold for the three months ended in Jul. 2013 was \$149.8 Mil. Hence, rue21 Inc's days inventory for the three months ended in Jul. 2013 was 106.94.

rue21 Inc's days inventory declined from Jul. 2012 (109.01) to Jul. 2013 (106.94).

Inventory can be measured by Days Sales of Inventory (DSI). rue21 Inc's days sales of inventory (DSI) for the three months ended in Jul. 2013 was 69.84.

Inventory turnover measures how fast the company turns over its inventory within a year. rue21 Inc's inventory turnover for the three months ended in Jul. 2013 was 0.85.

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. rue21 Inc's inventory to revenue ratio for the three months ended in Jul. 2013 was 0.77.

Definition

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

rue21 Inc's Days Inventory for the fiscal year that ended in Jan. 2013 is calculated as

 Days Inventory (A: Jan. 2013 ) = Average Inventory / COGS * Days in Period = ( (Inventory (A: Jan. 2012 ) + Inventory (A: Jan. 2013 )) / 2 ) / COGS (A: Jan. 2013 ) * Days in Period = ( (131.136 + 157.269) / 2 ) / 556.368 * 365 = 144.2025 / 556.368 * 365 = 94.60

rue21 Inc's Days Inventory for the quarter that ended in Jul. 2013 is calculated as:

 Days Inventory (Q: Jul. 2013 ) = Average Inventory / COGS * Days in Period = ( (Inventory (Q: Apr. 2013 ) + Inventory (Q: Jul. 2013 )) / 2 ) / COGS (Q: Jul. 2013 ) * Days in Period = ( (168.198 + 182.825) / 2 ) / 149.763 * 365 / 4 = 175.5115 / 149.763 * 365 / 4 = 106.94

* 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).

rue21 Inc's Days Sales of Inventory for the three months ended in Jul. 2013 is calculated as

 Days Sales of Inventory (DSI) = Average Inventory / Revenue * Days in Period = 175.5115 / 229.322 * 365 / 4 = 69.84

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

rue21 Inc's Inventory Turnover for the three months ended in Jul. 2013 is calculated as

 Inventory Turnover = Cost of Goods Sold / Average Inventory = 149.763 / 175.5115 = 0.85

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.

rue21 Inc's Inventory to Revenue for the three months ended in Jul. 2013 is calculated as

 Inventory to Revenue = Average Inventory / Revenue = 175.5115 / 229.322 = 0.77

* 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

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

rue21 Inc Annual Data

 Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 DaysInventory 0.00 0.00 0.00 0.00 88.25 80.68 75.41 77.01 87.53 94.60

rue21 Inc Quarterly Data

 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 Jul13 DaysInventory 87.11 105.45 103.64 89.60 95.29 109.01 111.24 91.84 110.26 106.94
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