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Tesco PLC (OTCPK:TSCDY)
Days Inventory
22.64 (As of Aug. 2014)

Tesco PLC's average inventory for the six months ended in Aug. 2014 was $5,901 Mil. Tesco PLC's cost of goods sold for the six months ended in Aug. 2014 was $47,557 Mil. Hence, Tesco PLC's days inventory for the six months ended in Aug. 2014 was 22.64.

Tesco PLC's days inventory increased from Aug. 2013 (22.26) to Aug. 2014 (22.64). It might indicate that Tesco PLC's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Tesco PLC's days sales of inventory (DSI) for the six months ended in Aug. 2014 was 21.70.

Inventory turnover measures how fast the company turns over its inventory within a year. Tesco PLC's inventory turnover for the six months ended in Aug. 2014 was 8.06.

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. Tesco PLC's inventory to revenue ratio for the six months ended in Aug. 2014 was 0.12.


Definition

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

Tesco PLC's Days Inventory for the fiscal year that ended in Feb. 2014 is calculated as

Days Inventory
=( (Inventory (A: Feb. 2013 )+Inventory (A: Feb. 2014 ))/ 2 )/Cost of Goods Sold*Days in Period
=( (5647.05882353+5940.19933555)/ 2 )/98915.282392*365
=5793.62907954/98915.282392*365
=21.38

Tesco PLC's Days Inventory for the quarter that ended in Aug. 2014 is calculated as:

Days Inventory
=( (Inventory (Q: Feb. 2014 )+Inventory (Q: Aug. 2014 ))/ 2 )/Cost of Goods Sold*Days in Period
=( (5940.19933555+5861.56351792)/ 2 )/47557.0032573*365 / 2
=5900.88142673/47557.0032573*365 / 2
=22.64

* 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).

Tesco PLC's Days Sales of Inventory for the six months ended in Aug. 2014 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=5900.88142673/49630.2931596*365 / 2
=21.70

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

Tesco PLC's Inventory Turnover for the six months ended in Aug. 2014 is calculated as

Inventory Turnover=Cost of Goods Sold / Average Inventory
=47557.0032573 / 5900.88142673
=8.06

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.

Tesco PLC's Inventory to Revenue for the six months ended in Aug. 2014 is calculated as

Inventory to Revenue=Average Inventory / Revenue
=5900.88142673 / 49630.2931596
=0.12

* 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.

Tesco PLC Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
DaysInventory 14.3614.4915.0318.0122.3918.2818.8221.2923.1621.38

Tesco PLC Semi-Annual Data

Feb10Aug10Feb11Aug11Feb12Aug12Feb13Aug13Feb14Aug14
DaysInventory 18.9918.7219.4621.3622.5722.4722.8222.2621.5622.64
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