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Target Corp  (NYSE:TGT) Total Inventories: $9,497 Mil (As of Jan. 2019)

Target Corp's total inventories for the quarter that ended in Jan. 2019 was $9,497 Mil. Target Corp's average total inventories from the quarter that ended in Oct. 2018 to the quarter that ended in Jan. 2019 was $10,945 Mil.

In Ben Graham's calculation of liquidation value, inventory is only considered worth half of its book value. Target Corp's liquidation value for the quarter that ended in Jan. 2019 was $-23,689 Mil.

Inventory can be measured by days sales of inventory (DSI). Target Corp's days sales of inventory (DSI) for the three months ended in Jan. 2019 was 43.47.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Target Corp's Days Inventory for the three months ended in Jan. 2019 was 59.10.

Inventory Turnover measures how fast the company turns over its inventory within a year. Target Corp's Inventory Turnover for the quarter that ended in Jan. 2019 was 1.54.

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. Target Corp's Inventory-to-Revenue for the quarter that ended in Jan. 2019 was 0.48.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Target Corp Annual Data

Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19
Total Inventories Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8,282.00 8,601.00 8,309.00 8,597.00 9,497.00

Target Corp Quarterly Data

Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19
Total Inventories Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8,597.00 8,652.00 9,112.00 12,393.00 9,497.00

Calculation

Total Inventories includes the raw materials, work-in-process goods and completely finished goods of a company. It is a portion of a company's current assets.


Explanation

Inventory control is an important part of business operation. If a company does not have enough inventory, it may not be able to meet customers' required delivery time. If it has too much inventory, the cost of holding the inventory can be high.

1. In Ben Graham's calculation of liquidation value, inventory is only considered worth half of its book value.

Target Corp's liquidation value for the quarter that ended in Jan. 2019 is

Liquidation value (Q: Jan. 2019 )
=Cash, Cash Equivalents, Marketable Securities-Total Liabilities+(0.75 * Accounts Receivable)+(0.5 * Total Inventories)
=1556-29993+0.75 * 0+0.5 * 9497
=-23,689

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

Target Corp's Days Sales of Inventory for the three months ended in Jan. 2019 is

Days Sales of Inventory (DSI)
=Total Inventories (Q: Jan. 2019 )/Revenue (Q: Jan. 2019 )*Days in Period
=10945/22977*365 / 4
=43.47

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

Target Corp's Days Inventory for the three months ended in Jan. 2019 is calculated as:

Days Inventory=Total Inventories (Q: Jan. 2019 )/Cost of Goods Sold (Q: Jan. 2019 )*Days in Period
=10945/16899*365 / 4
=59.10

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

Target Corp's Inventory Turnover for the quarter that ended in Jan. 2019 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Jan. 2019 ) / Total Inventories (Q: Jan. 2019 )
=16899 / 10945
=1.54

5. 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.

Target Corp's Inventory to Revenue for the quarter that ended in Jan. 2019 is calculated as

Inventory-to-Revenue=Total Inventories (Q: Jan. 2019 ) / Revenue (Q: Jan. 2019 )
=10945 / 22977
=0.48

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Be Aware

Manufacturers with durable competitive advantages have the advantage that the products they sell do not change, and therefore will never become obsolete. Buffett likes this advantage.

When identifying manufacturers with durable competitive advantage, look for inventory and net earnings that rise correspondingly. This indicates that the company is finding profitable ways to increase sales which called for an increase in inventory.

Manufacturers with inventories that spike up and down are indicative of competitive industries subject to boom and bust.


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