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Wal-Mart Stores Inc (NYSE:WMT)
Days Inventory
48.25 (As of Apr. 2015)

Wal-Mart Stores Inc's average inventory for the three months ended in Apr. 2015 was $45,726 Mil. Wal-Mart Stores Inc's cost of goods sold for the three months ended in Apr. 2015 was $86,483 Mil. Hence, Wal-Mart Stores Inc's days inventory for the three months ended in Apr. 2015 was 48.25.

Wal-Mart Stores Inc's days inventory increased from Apr. 2014 (47.44) to Apr. 2015 (48.25). It might indicate that Wal-Mart Stores Inc's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Wal-Mart Stores Inc's days sales of inventory (DSI) for the three months ended in Apr. 2015 was 36.34.

Inventory turnover measures how fast the company turns over its inventory within a year. Wal-Mart Stores Inc's inventory turnover for the three months ended in Apr. 2015 was 1.89.

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. Wal-Mart Stores Inc's inventory to revenue ratio for the three months ended in Apr. 2015 was 0.40.


Definition

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

Wal-Mart Stores Inc's Days Inventory for the fiscal year that ended in Jan. 2015 is calculated as

Days Inventory (A: Jan. 2015 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Jan. 2014 ) + Inventory (A: Jan. 2015 )) / 2 ) / COGS (A: Jan. 2015 )*Days in Period
=( (44858 + 45141) / 2 ) / 365086*365
=44999.5 / 365086*365
=44.99

Wal-Mart Stores Inc's Days Inventory for the quarter that ended in Apr. 2015 is calculated as:

Days Inventory (Q: Apr. 2015 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Jan. 2015 ) + Inventory (Q: Apr. 2015 )) / 2 ) / COGS (Q: Apr. 2015 )*Days in Period
=( (45141 + 46310) / 2 ) / 86483*365 / 4
=45725.5 / 86483*365 / 4
=48.25

* 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).

Wal-Mart Stores Inc's Days Sales of Inventory for the three months ended in Apr. 2015 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=45725.5/114826*365 / 4
=36.34

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

Wal-Mart Stores Inc's Inventory Turnover for the three months ended in Apr. 2015 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.

Wal-Mart Stores Inc's Inventory to Revenue for the three months ended in Apr. 2015 is calculated as

Inventory to Revenue=Average Inventory / Revenue
=45725.5 / 114826
=0.40

* 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.

Wal-Mart Stores Inc Annual Data

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
DaysInventory 47.3645.3543.8841.8240.3040.0041.9543.7845.1944.99

Wal-Mart Stores Inc Quarterly Data

Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15
DaysInventory 43.3546.1344.8548.6744.0247.4446.0149.5644.4948.25
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