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GuruFocus has detected 4 Warning Signs with Wal-Mart Stores Inc $WMT.
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Wal-Mart Stores Inc (NYSE:WMT)
Days Inventory
43.35 (As of Jan. 2017)

Wal-Mart Stores Inc's average inventory for the three months ended in Jan. 2017 was $46,434 Mil. Wal-Mart Stores Inc's cost of goods sold for the three months ended in Jan. 2017 was $97,743 Mil. Hence, Wal-Mart Stores Inc's days inventory for the three months ended in Jan. 2017 was 43.35.

WMT' s Days Inventory Range Over the Past 10 Years
Min: 40   Max: 45.3
Current: 45.53

40
45.3

During the past 13 years, Wal-Mart Stores Inc's highest Days Inventory was 45.30. The lowest was 40.00. And the median was 43.83.

WMT's Days Inventory is ranked lower than
60% of the 350 Companies
in the Global Discount Stores industry.

( Industry Median: 39.37 vs. WMT: 45.53 )

Wal-Mart Stores Inc's days inventory declined from Jan. 2016 (44.77) to Jan. 2017 (43.35).

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 Jan. 2017 was 32.36.

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 Jan. 2017 was 2.10.

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 Jan. 2017 was 0.35.


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. 2017 is calculated as

Days Inventory (A: Jan. 2017 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Jan. 2016 ) + Inventory (A: Jan. 2017 )) / 2 ) / COGS (A: Jan. 2017 )*Days in Period
=( (44469 + 43046) / 2 ) / 361256*365
=43757.5 / 361256*365
=44.21

Wal-Mart Stores Inc's Days Inventory for the quarter that ended in Jan. 2017 is calculated as:

Days Inventory (Q: Jan. 2017 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Oct. 2016 ) + Inventory (Q: Jan. 2017 )) / 2 ) / COGS (Q: Jan. 2017 )*Days in Period
=( (49822 + 43046) / 2 ) / 97743*365 / 4
=46434 / 97743*365 / 4
=43.35

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 Jan. 2017 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=46434/130936*365 / 4
=32.36

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 Jan. 2017 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 Jan. 2017 is calculated as

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Wal-Mart Stores Inc Annual Data

Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16Jan17
DaysInventory 43.8841.8240.3040.0041.9743.7845.1944.9945.3044.21

Wal-Mart Stores Inc Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
DaysInventory 49.5644.4948.2546.2649.9444.7746.9144.8548.6543.35
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