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Premier Exhibitions, Inc. (NAS:PRXI)
Inventory Turnover
3.06 (As of Nov. 2013)

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. Premier Exhibitions, Inc.'s cost of goods sold for the three months ended in Nov. 2013 was $4.04 Mil. Premier Exhibitions, Inc.'s average inventory for the quarter that ended in Nov. 2013 was $1.32 Mil. Premier Exhibitions, Inc.'s inventory turnover for the quarter that ended in Nov. 2013 was 3.06.

Days inventory indicates the number of days of goods in sales that a company has in the inventory. Premier Exhibitions, Inc.'s days inventory for the three months ended in Nov. 2013 was 29.70.

Inventory can be measured by Days Sales of Inventory (DSI). Premier Exhibitions, Inc.'s days sales of inventory (DSI) for the three months ended in Nov. 2013 was 18.78.

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. Premier Exhibitions, Inc.'s inventory to revenue ratio for the quarter that ended in Nov. 2013 was 0.21.


Definition

Premier Exhibitions, Inc.'s Inventory Turnover for the fiscal year that ended in Feb. 2013 is calculated as

Inventory Turnover (A: Feb. 2013 )=Cost of Goods Sold (A: Feb. 2013 ) / Average Inventory (A: Feb. 2013 )
=18.745 / 1.205
=15.56

Premier Exhibitions, Inc.'s Inventory Turnover for the quarter that ended in Nov. 2013 is calculated as

Inventory Turnover (Q: Nov. 2013 )=Cost of Goods Sold (Q: Nov. 2013 ) / Average Inventory (Q: Nov. 2013 )
=4.042 / 1.319
=3.06

* 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.

Premier Exhibitions, Inc.'s Days Inventory for the three months ended in Nov. 2013 is calculated as:

Days Inventory=Inventory (Q: Nov. 2013 )/Cost of Goods Sold (Q: Nov. 2013 )*Days in Period
=1.319/4.042*91
=29.70

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

Premier Exhibitions, Inc.'s Days Sales of Inventory for the three months ended in Nov. 2013 is calculated as:

Days Sales of Inventory (DSI)=Inventory (Q: Nov. 2013 )/Revenue (Q: Nov. 2013 )*Days in Period
=1.319/6.392*91
=18.78

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.

Premier Exhibitions, Inc.'s Inventory to Revenue for the quarter that ended in Nov. 2013 is calculated as

Inventory to Revenue=Inventory (Q: Nov. 2013 ) / Revenue (Q: Nov. 2013 )
=1.319 / 6.392
=0.21

* 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

Inventory, Cost of Goods Sold, Days Inventory, Revenue, Inventory to Revenue


Historical Data

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

Premier Exhibitions, Inc. Annual Data

Feb04Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13
Inventory Turnover 0.000.000.000.0071.9372.4828.4944.4915.9615.56

Premier Exhibitions, Inc. Quarterly Data

Aug11Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13
Inventory Turnover 6.584.284.093.753.583.233.232.812.743.06
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