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

Walgreen Co's inventory for the three months ended in May. 2014 was \$6,439 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 41.97.

Walgreen Co's days inventory declined from May. 2013 (47.83) to May. 2014 (41.97).

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 30.20.

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 2.17.

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 0.33.

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 / Cost of Goods Sold * Days in Period = 6852 / 51098 * 365 = 48.94

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

 Days Inventory = Inventory / Cost of Goods Sold * Days in Period = 6439 / 13961 * 91 = 41.97

* 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) = Inventory / Revenue * Days in Period = 6439 / 19401 * 91 = 30.20

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

 Inventory Turnover = Cost of Goods Sold / Average Inventory = 13961 / 6439 = 2.17

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

 Inventory to Revenue = Inventory / Revenue = 6439 / 19401 = 0.33

* 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.

Walgreen Co Annual Data

 Aug04 Aug05 Aug06 Aug07 Aug08 Aug09 Aug10 Aug11 Aug12 Aug13 DaysInventory 63.33 67.12 64.50 64.35 62.42 54.20 55.59 56.80 50.07 48.94

Walgreen Co Quarterly Data

 Feb12 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 DaysInventory 50.41 50.04 52.32 58.26 50.62 47.83 48.90 53.38 47.04 41.97
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