Switch to:
Peerless Systems Corp (NAS:PRLS)
Inventory Turnover
0.04 (As of Oct. 2014)

Inventory turnover measures how fast the company turns over its inventory within a year. It is calculated as cost of goods sold divided by average inventory. Peerless Systems Corp's cost of goods sold for the three months ended in Oct. 2014 was \$0.04 Mil. Peerless Systems Corp's average inventory for the quarter that ended in Oct. 2014 was \$0.89 Mil. Peerless Systems Corp's inventory turnover for the quarter that ended in Oct. 2014 was 0.04.

Days inventory indicates the number of days of goods in sales that a company has in the inventory. Peerless Systems Corp's days inventory for the three months ended in Oct. 2014 was 2,084.71.

Inventory can be measured by Days Sales of Inventory (DSI). Peerless Systems Corp's days sales of inventory (DSI) for the three months ended in Oct. 2014 was 177.52.

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. Peerless Systems Corp's inventory to revenue ratio for the quarter that ended in Oct. 2014 was 1.95.

Definition

Peerless Systems Corp's Inventory Turnover for the fiscal year that ended in Jan. 2014 is calculated as

 Inventory Turnover (A: Jan. 2014 ) = Cost of Goods Sold / Average Inventory = Cost of Goods Sold (A: Jan. 2014 ) / ( (Inventory (A: Jan. 2013 ) + Inventory (A: Jan. 2014 )) / 2 ) = 0.273 / ( (0 + 0) / 2 ) = 0.273 / 0 = N/A

Peerless Systems Corp's Inventory Turnover for the quarter that ended in Oct. 2014 is calculated as

 Inventory Turnover (Q: Oct. 2014 ) = Cost of Goods Sold / Average Inventory = Cost of Goods Sold (Q: Oct. 2014 ) / ( (Inventory (Q: Jul. 2014 ) + Inventory (Q: Oct. 2014 )) / 2 ) = 0.039 / ( (0 + 1.782) / 2 ) = 0.039 / 0.891 = 0.04

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher inventory turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

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

Peerless Systems Corp's Days Inventory for the three months ended in Oct. 2014 is calculated as:

 Days Inventory = Average Inventory (Q: Oct. 2014 ) / Cost of Goods Sold (Q: Oct. 2014 ) * Days in Period = 0.891 / 0.039 * 365 / 4 = 2,084.71

2. Inventory can be measured by Days Sales of Inventory (DSI).

Peerless Systems Corp's Days Sales of Inventory for the three months ended in Oct. 2014 is calculated as:

 Days Sales of Inventory (DSI) = Average Inventory (Q: Oct. 2014 ) / Revenue (Q: Oct. 2014 ) * Days in Period = 0.891 / 0.458 * 365 / 4 = 177.52

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.

Peerless Systems Corp's Inventory to Revenue for the quarter that ended in Oct. 2014 is calculated as

 Inventory to Revenue = Average Inventory (Q: Oct. 2014 ) / Revenue (Q: Oct. 2014 ) = 0.891 / 0.458 = 1.95

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate inventory turnover. An average inventory is a better indication.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Peerless Systems Corp Annual Data

 Jan05 Jan06 Jan07 Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Inventory Turnover 25.54 49.56 453.23 319.13 0.00 0.00 0.00 0.00 0.00 0.00

Peerless Systems Corp Quarterly Data

 Jul12 Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Inventory Turnover 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.04
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to \$400 per referral. ( Learn More)