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Ulta Salon Cosmetics & Fragrances Inc (NAS:ULTA)
Days Inventory
123.04 (As of Oct. 2014)

Ulta Salon Cosmetics & Fragrances Inc's average inventory for the three months ended in Oct. 2014 was $626 Mil. Ulta Salon Cosmetics & Fragrances Inc's cost of goods sold for the three months ended in Oct. 2014 was $464 Mil. Hence, Ulta Salon Cosmetics & Fragrances Inc's days inventory for the three months ended in Oct. 2014 was 123.04.

Ulta Salon Cosmetics & Fragrances Inc's days inventory increased from Oct. 2013 (122.98) to Oct. 2014 (123.04). It might indicate that Ulta Salon Cosmetics & Fragrances Inc's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Ulta Salon Cosmetics & Fragrances Inc's days sales of inventory (DSI) for the three months ended in Oct. 2014 was 76.55.

Inventory turnover measures how fast the company turns over its inventory within a year. Ulta Salon Cosmetics & Fragrances Inc's inventory turnover for the three months ended in Oct. 2014 was 0.74.

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. Ulta Salon Cosmetics & Fragrances Inc's inventory to revenue ratio for the three months ended in Oct. 2014 was 0.84.


Definition

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

Ulta Salon Cosmetics & Fragrances Inc's Days Inventory for the fiscal year that ended in Jan. 2014 is calculated as

Days Inventory (A: Jan. 2014 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Jan. 2013 ) + Inventory (A: Jan. 2014 )) / 2 ) / COGS (A: Jan. 2014 )*Days in Period
=( (361.125 + 457.933) / 2 ) / 1729.325*365
=409.529 / 1729.325*365
=86.44

Ulta Salon Cosmetics & Fragrances Inc's Days Inventory for the quarter that ended in Oct. 2014 is calculated as:

Days Inventory (Q: Oct. 2014 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Jul. 2014 ) + Inventory (Q: Oct. 2014 )) / 2 ) / COGS (Q: Oct. 2014 )*Days in Period
=( (541.508 + 709.667) / 2 ) / 463.967*365 / 4
=625.5875 / 463.967*365 / 4
=123.04

* 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).

Ulta Salon Cosmetics & Fragrances Inc's Days Sales of Inventory for the three months ended in Oct. 2014 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=625.5875/745.722*365 / 4
=76.55

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

Ulta Salon Cosmetics & Fragrances Inc's Inventory Turnover for the three months ended in Oct. 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.

Ulta Salon Cosmetics & Fragrances Inc's Inventory to Revenue for the three months ended in Oct. 2014 is calculated as

Inventory to Revenue=Average Inventory / Revenue
=625.5875 / 745.722
=0.84

* 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.

Ulta Salon Cosmetics & Fragrances Inc Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
DaysInventory 0.0049.3183.7588.6793.9990.3279.9972.9176.9686.44

Ulta Salon Cosmetics & Fragrances Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
DaysInventory 94.25111.1075.3196.75105.96122.9882.6196.49103.08123.04
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