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GuruFocus has detected 2 Warning Signs with JC Penney Co Inc $JCP.
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JC Penney Co Inc (NYSE:JCP)
Days Inventory
153.66 (As of Apr. 2017)

JC Penney Co Inc's average inventory for the three months ended in Apr. 2017 was $2,902 Mil. JC Penney Co Inc's cost of goods sold for the three months ended in Apr. 2017 was $1,723 Mil. Hence, JC Penney Co Inc's days inventory for the three months ended in Apr. 2017 was 153.66.

JCP' s Days Inventory Range Over the Past 10 Years
Min: 101.3   Max: 140.51
Current: 140.51

101.3
140.51

During the past 13 years, JC Penney Co Inc's highest Days Inventory was 140.51. The lowest was 101.30. And the median was 108.27.

JCP's Days Inventory is ranked lower than
71% of the 868 Companies
in the Global Department Stores industry.

( Industry Median: 89.83 vs. JCP: 140.51 )

JC Penney Co Inc's days inventory increased from Apr. 2016 (143.67) to Apr. 2017 (153.66). It might indicate that JC Penney Co Inc's sales slowed down.

Inventory can be measured by Days Sales of Inventory (DSI). JC Penney Co Inc's days sales of inventory (DSI) for the three months ended in Apr. 2017 was 97.84.

Inventory turnover measures how fast the company turns over its inventory within a year. JC Penney Co Inc's inventory turnover for the three months ended in Apr. 2017 was 0.59.

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. JC Penney Co Inc's inventory to revenue ratio for the three months ended in Apr. 2017 was 1.07.


Definition

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

JC Penney Co 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
=( (2721 + 2854) / 2 ) / 8071*365
=2787.5 / 8071*365
=126.06

JC Penney Co Inc's Days Inventory for the quarter that ended in Apr. 2017 is calculated as:

Days Inventory (Q: Apr. 2017 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Jan. 2017 ) + Inventory (Q: Apr. 2017 )) / 2 ) / COGS (Q: Apr. 2017 )*Days in Period
=( (2854 + 2949) / 2 ) / 1723*365 / 4
=2901.5 / 1723*365 / 4
=153.66

* 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).

JC Penney Co Inc's Days Sales of Inventory for the three months ended in Apr. 2017 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=2901.5/2706*365 / 4
=97.84

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

JC Penney Co Inc's Inventory Turnover for the three months ended in Apr. 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.

JC Penney Co Inc's Inventory to Revenue for the three months ended in Apr. 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.

JC Penney Co Inc Annual Data

Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16Jan17
DaysInventory 105.42108.83107.71105.40101.30107.57115.08127.52121.45126.06

JC Penney Co Inc Quarterly Data

Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17Apr17
DaysInventory 106.32137.25146.60167.77110.73143.67146.93169.59112.73153.66
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