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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
=( (Inventory (A: Jan. 2012 )+Inventory (A: Jan. 2013 ))/ 2 )/Cost of Goods Sold*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
=( (Inventory (Q: Apr. 2013 )+Inventory (Q: Jul. 2013 ))/ 2 )/Cost of Goods Sold*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

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

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.

rue21 Inc Annual Data

Jan08Jan09Jan10Jan11Jan12Jan13
DaysInventory 0.000.000.000.000.0080.6875.4177.0187.5394.60

rue21 Inc Quarterly Data

Apr11Jul11Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13
DaysInventory 87.11105.45103.6489.6095.29109.01111.2491.84110.26106.94
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