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GuruFocus has detected 1 Warning Sign with Tesco PLC $TSCDY.
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Tesco PLC (OTCPK:TSCDY)
Days Inventory
16.64 (As of Feb. 2017)

Tesco PLC's average inventory for the six months ended in Feb. 2017 was $3,080 Mil. Tesco PLC's cost of goods sold for the six months ended in Feb. 2017 was $33,775 Mil. Hence, Tesco PLC's days inventory for the six months ended in Feb. 2017 was 16.64.

TSCDY' s Days Inventory Range Over the Past 10 Years
Min: 16.29   Max: 22.61
Current: 16.61

16.29
22.61

During the past 13 years, Tesco PLC's highest Days Inventory was 22.61. The lowest was 16.29. And the median was 19.34.

TSCDY's Days Inventory is ranked higher than
82% of the 362 Companies
in the Global Grocery Stores industry.

( Industry Median: 39.51 vs. TSCDY: 16.61 )

Tesco PLC's days inventory declined from Feb. 2016 (18.99) to Feb. 2017 (16.64).

Inventory can be measured by Days Sales of Inventory (DSI). Tesco PLC's days sales of inventory (DSI) for the six months ended in Feb. 2017 was 15.73.

Inventory turnover measures how fast the company turns over its inventory within a year. Tesco PLC's inventory turnover for the six months ended in Feb. 2017 was 10.97.

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. Tesco PLC's inventory to revenue ratio for the six months ended in Feb. 2017 was 0.09.


Definition

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

Tesco PLC'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
=( (3471.42857143 + 2876.25) / 2 ) / 66268.75*365
=3173.83928571 / 66268.75*365
=17.48

Tesco PLC'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: Aug. 2016 ) + Inventory (Q: Feb. 2017 )) / 2 ) / COGS (Q: Feb. 2017 )*Days in Period
=( (3283.09305374 + 2876.25) / 2 ) / 33775*365 / 2
=3079.67152687 / 33775*365 / 2
=16.64

* 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).

Tesco PLC's Days Sales of Inventory for the six months ended in Feb. 2017 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=3079.67152687/35723.75*365 / 2
=15.73

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

Tesco PLC's Inventory Turnover for the six months ended in Feb. 2017 is calculated as

Inventory Turnover=Cost of Goods Sold / Average Inventory
=33775 / 3079.67152687
=10.97

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.

Tesco PLC's Inventory to Revenue for the six months ended in Feb. 2017 is calculated as

Inventory to Revenue=Average Inventory / Revenue
=3079.67152687 / 35723.75
=0.09

* 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.

Tesco PLC Annual Data

Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16Feb17
DaysInventory 18.2121.9418.1219.1521.2922.8421.6921.0420.0217.48

Tesco PLC Semi-Annual Data

Aug12Feb13Aug13Feb14Aug14Feb15Aug15Feb16Aug16Feb17
DaysInventory 22.7422.2422.8421.3324.3419.4019.6518.9918.0916.64
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