RadioShack (FRA:TAN) Inventory Turnover : 2.58 (As of Dec. 2013)

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What is RadioShack Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. RadioShack's Cost of Goods Sold for the six months ended in Dec. 2013 was €1,651 Mil. RadioShack's Average Total Inventories for the quarter that ended in Dec. 2013 was €639 Mil. RadioShack's Inventory Turnover for the quarter that ended in Dec. 2013 was 2.58.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. RadioShack's Days Inventory for the six months ended in Dec. 2013 was 70.61.

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. RadioShack's Inventory-to-Revenue for the quarter that ended in Dec. 2013 was 0.25.

RadioShack Inventory Turnover Historical Data

The historical data trend for RadioShack's Inventory Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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RadioShack Inventory Turnover Chart

RadioShack Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Inventory Turnover

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3.41

3.53

3.51

2.86

2.58

RadioShack Semi-Annual Data
	Dec95	Dec96	Dec97	Dec98	Dec99	Dec00	Dec01	Dec02	Dec03	Dec04	Dec05	Dec06	Dec07	Dec08	Dec09	Dec10	Dec11	Dec12	Dec13
Inventory Turnover	Get a 7-Day Free Trial														3.41	3.53	3.51	2.86	2.58

RadioShack Inventory Turnover Calculation

RadioShack's Inventory Turnover for the fiscal year that ended in Dec. 2013 is calculated as

	Inventory Turnover (A: Dec. 2013 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2013 )	/ (	(Total Inventories (A: Dec. 2012 )	+	Total Inventories (A: Dec. 2013 ))	/	count )
=	1651.333	/ (	(692.125	+	585.679)	/	2 )
=	1651.333	/	638.902
=	2.58

RadioShack's Inventory Turnover for the quarter that ended in Dec. 2013 is calculated as

	Inventory Turnover (Q: Dec. 2013 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2013 )	/ (	(Total Inventories (Q: Dec. 2012 )	+	Total Inventories (Q: Dec. 2013 ))	/	count )
=	1651.333	/ (	(692.125	+	585.679)	/	2 )
=	1651.333	/	638.902
=	2.58

RadioShack (FRA:TAN) Inventory Turnover 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.

RadioShack's Days Inventory for the six months ended in Dec. 2013 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2013 )	/	Cost of Goods Sold (Q: Dec. 2013 )	*	Days in Period
	=	638.902	/	1651.333	*	365 / 2
	=	70.61

2. 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.

RadioShack's Inventory to Revenue for the quarter that ended in Dec. 2013 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2013 )	/	Revenue (Q: Dec. 2013 )
	=	638.902	/	2507.039
	=	0.25

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.

RadioShack Inventory Turnover Related Terms

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RadioShack (FRA:TAN) Business Description

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Address

Website

http://www.radioshack.com

RS Legacy Corp, formerlyÂ RadioShack Corp was incorporated in 1967. The Company, along with its subsidiaries, is primarily engaged in the retail sale of consumer electronics goods and services through its RadioShack store chain. At December 31, 2013, it operated 4,297 U.S. company-operated stores under the RadioShack brand located throughout the United States, as well as in Puerto Rico and the U.S. Virgin Islands. These stores are located in strip centers and shopping malls, as well as individual storefronts. Each location carries a broad assortment of both name brand and private brand consumer electronics products. The Company's product lines are categorized into two platforms; namely mobility and retail. Its mobility platform includes postpaid and prepaid wireless handsets, commissions, residual income, prepaid wireless airtime, tablet devices, and e-readers. The retail platform includes remaining consumer electronics product categories and related accessories; batteries and power products; and technical products. The Company has other sales channels and support operations such as: Dealer Outlets, RadioShack de Mexico, RadioShack.com, Distribution Centers, RadioShack Technology Services and RadioShack Global Sourcing. The Company owns or is licensed to use many trademarks and service marks related to its RadioShack stores in the United States and in foreign countries. Its private brand manufactured products are sold under the RadioShack, AUVIO, Enercell and Gigaware trademark. It also owns patents and patent applications relating to consumer electronics products. The Company competes in the sale of its products and services with several retail formats, including national, regional, and independent consumer electronics retailers. It competes with department and specialty retail stores in certain product categories. It competes with wireless providers in mobility platform through their own retail and online presence. It also competes with big-box retailers, discount and warehouse retailers, and Internet retailers. The Company is subject to foreign, federal, state, and local laws and regulations including, but not limited to, the Fair Labor Standards Act and ERISA, each as amended, and regulations promulgated by the Federal Trade Commission, SEC, Internal Revenue Service, Department of Labor, Occupational Safety and Health Administration, and Environmental Protection Agency.