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Rite Aid Corp (NYSE:RAD)
Days Inventory
40.77 (As of Feb. 2017)

Rite Aid Corp's average inventory for the three months ended in Feb. 2017 was $2,892 Mil. Rite Aid Corp's cost of goods sold for the three months ended in Feb. 2017 was $6,473 Mil. Hence, Rite Aid Corp's days inventory for the three months ended in Feb. 2017 was 40.77.

RAD' s Days Inventory Range Over the Past 10 Years
Min: 40.29   Max: 70.58
Current: 40.57

40.29
70.58

During the past 13 years, Rite Aid Corp's highest Days Inventory was 70.58. The lowest was 40.29. And the median was 62.34.

RAD's Days Inventory is ranked lower than
53% of the 350 Companies
in the Global Pharmaceutical Retailers industry.

( Industry Median: 39.37 vs. RAD: 40.57 )

Rite Aid Corp's days inventory declined from Feb. 2016 (40.79) to Feb. 2017 (40.77).

Inventory can be measured by Days Sales of Inventory (DSI). Rite Aid Corp's days sales of inventory (DSI) for the three months ended in Feb. 2017 was 30.90.

Inventory turnover measures how fast the company turns over its inventory within a year. Rite Aid Corp's inventory turnover for the three months ended in Feb. 2017 was 2.24.

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. Rite Aid Corp's inventory to revenue ratio for the three months ended in Feb. 2017 was 0.34.


Definition

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

Rite Aid Corp's Days Inventory for the fiscal year that ended in Feb. 2017 is calculated as

Days Inventory (A: Feb. 2017 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Feb. 2016 ) + Inventory (A: Feb. 2017 )) / 2 ) / COGS (A: Feb. 2017 )*Days in Period
=( (2697.104 + 2837.211) / 2 ) / 25071.008*365
=2767.1575 / 25071.008*365
=40.29

Rite Aid Corp's Days Inventory for the quarter that ended in Feb. 2017 is calculated as:

Days Inventory (Q: Feb. 2017 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Nov. 2016 ) + Inventory (Q: Feb. 2017 )) / 2 ) / COGS (Q: Feb. 2017 )*Days in Period
=( (2947.358 + 2837.211) / 2 ) / 6473.199*365 / 4
=2892.2845 / 6473.199*365 / 4
=40.77

* 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).

Rite Aid Corp's Days Sales of Inventory for the three months ended in Feb. 2017 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=2892.2845/8541.361*365 / 4
=30.90

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

Rite Aid Corp's Inventory Turnover for the three months ended in Feb. 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.

Rite Aid Corp's Inventory to Revenue for the three months ended in Feb. 2017 is calculated as

Inventory to Revenue=Average Inventory / Revenue
=2892.2845 / 8541.361
=0.34

* 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.

Rite Aid Corp Annual Data

Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16Feb17
DaysInventory 64.7170.5865.3563.0359.4563.5461.6556.5944.4540.29

Rite Aid Corp Quarterly Data

Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16Feb17
DaysInventory 56.6354.8454.3545.4742.8340.7938.6040.6842.5340.77
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