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Zale Corp (NYSE:ZLC)
Days Inventory
261.13 (As of Jan. 2014)

Zale Corp's average inventory for the three months ended in Jan. 2014 was \$884 Mil. Zale Corp's cost of goods sold for the three months ended in Jan. 2014 was \$309 Mil. Hence, Zale Corp's days inventory for the three months ended in Jan. 2014 was 261.13.

Zale Corp's days inventory increased from Jan. 2013 (240.46) to Jan. 2014 (261.13). It might indicate that Zale Corp's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). Zale Corp's days sales of inventory (DSI) for the three months ended in Jan. 2014 was 122.85.

Inventory turnover measures how fast the company turns over its inventory within a year. Zale Corp's inventory turnover for the three months ended in Jan. 2014 was 0.35.

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. Zale Corp's inventory to revenue ratio for the three months ended in Jan. 2014 was 1.35.

Definition

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

Zale Corp's Days Inventory for the fiscal year that ended in Jul. 2013 is calculated as

 Days Inventory (A: Jul. 2013 ) = Average Inventory / COGS * Days in Period = ( (Inventory (A: Jul. 2012 ) + Inventory (A: Jul. 2013 )) / 2 ) / COGS (A: Jul. 2013 ) * Days in Period = ( (741.788 + 767.54) / 2 ) / 903.602 * 365 = 754.664 / 903.602 * 365 = 304.84

Zale Corp's Days Inventory for the quarter that ended in Jan. 2014 is calculated as:

 Days Inventory (Q: Jan. 2014 ) = Average Inventory / COGS * Days in Period = ( (Inventory (Q: Oct. 2013 ) + Inventory (Q: Jan. 2014 )) / 2 ) / COGS (Q: Jan. 2014 ) * Days in Period = ( (903.282 + 864.275) / 2 ) / 308.83 * 365 / 4 = 883.7785 / 308.83 * 365 / 4 = 261.13

* 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).

Zale Corp's Days Sales of Inventory for the three months ended in Jan. 2014 is calculated as

 Days Sales of Inventory (DSI) = Average Inventory / Revenue * Days in Period = 883.7785 / 656.449 * 365 / 4 = 122.85

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

Zale Corp's Inventory Turnover for the three months ended in Jan. 2014 is calculated as

 Inventory Turnover = Cost of Goods Sold / Average Inventory = 308.83 / 883.7785 = 0.35

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.

Zale Corp's Inventory to Revenue for the three months ended in Jan. 2014 is calculated as

 Inventory to Revenue = Average Inventory / Revenue = 883.7785 / 656.449 = 1.35

* 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.

Zale Corp Annual Data

 Jul04 Jul05 Jul06 Jul07 Jul08 Jul09 Jul10 Jul11 Jul12 Jul13 DaysInventory 262.79 263.62 263.75 295.73 301.62 292.41 328.38 301.30 294.74 304.84

Zale Corp Quarterly Data

 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 DaysInventory 440.77 232.44 335.21 352.01 450.48 240.46 361.94 372.39 451.53 261.13
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