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Walgreen Co (NYSE:WAG)
Days Inventory
44.49 (As of May. 2014)

Walgreen Co's average inventory for the three months ended in May. 2014 was $6,826 Mil. Walgreen Co's cost of goods sold for the three months ended in May. 2014 was $13,961 Mil. Hence, Walgreen Co's days inventory for the three months ended in May. 2014 was 44.49.

Walgreen Co's days inventory declined from May. 2013 (49.13) to May. 2014 (44.49).

Inventory can be measured by Days Sales of Inventory (DSI). Walgreen Co's days sales of inventory (DSI) for the three months ended in May. 2014 was 32.02.

Inventory turnover measures how fast the company turns over its inventory within a year. Walgreen Co's inventory turnover for the three months ended in May. 2014 was 2.05.

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. Walgreen Co's inventory to revenue ratio for the three months ended in May. 2014 was 0.35.


Definition

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

Walgreen Co's Days Inventory for the fiscal year that ended in Aug. 2013 is calculated as

Days Inventory
=( (Inventory (A: Aug. 2012 )+Inventory (A: Aug. 2013 ))/ 2 )/Cost of Goods Sold*Days in Period
=( (7036+6852)/ 2 )/51098*365
=6944/51098*365
=49.60

Walgreen Co's Days Inventory for the quarter that ended in May. 2014 is calculated as:

Days Inventory
=( (Inventory (Q: Feb. 2014 )+Inventory (Q: May. 2014 ))/ 2 )/Cost of Goods Sold*Days in Period
=( (7213+6439)/ 2 )/13961*91
=6826/13961*91
=44.49

* 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).

Walgreen Co's Days Sales of Inventory for the three months ended in May. 2014 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=6826/19401*91
=32.02

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

Walgreen Co's Inventory Turnover for the three months ended in May. 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.

Walgreen Co's Inventory to Revenue for the three months ended in May. 2014 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.

Walgreen Co Annual Data

Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14
DaysInventory 61.9962.0660.8460.4456.0353.3754.4553.6649.6043.04

Walgreen Co Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
DaysInventory 51.2652.2055.3352.6049.1349.0150.3548.7244.4941.47
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