Sears Canada (Sears Canada) Inventory Turnover

: 0.62 (As of Apr. 2017)

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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. Sears Canada's Cost of Goods Sold for the three months ended in Apr. 2017 was $291 Mil. Sears Canada's Average Total Inventories for the quarter that ended in Apr. 2017 was $472 Mil. Sears Canada's Inventory Turnover for the quarter that ended in Apr. 2017 was 0.62.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Sears Canada's Days Inventory for the three months ended in Apr. 2017 was 147.89.

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. Sears Canada's Inventory-to-Revenue for the quarter that ended in Apr. 2017 was 1.25.

Sears Canada Inventory Turnover Historical Data

The historical data trend for Sears Canada'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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Sears Canada Annual Data

Trend

Jan08

Jan09

Jan10

Jan11

Jan12

Jan13

Jan14

Jan15

Jan16

Jan17

Inventory Turnover

3.32

2.97

3.08

3.03

3.13

Sears Canada Quarterly Data
	Jul12	Oct12	Jan13	Apr13	Jul13	Oct13	Jan14	Apr14	Jul14	Oct14	Jan15	Apr15	Jul15	Oct15	Jan16	Apr16	Jul16	Oct16	Jan17	Apr17
Inventory Turnover																0.66	0.70	0.67	0.86	0.62

Sears Canada Inventory Turnover Calculation

Sears Canada's Inventory Turnover for the fiscal year that ended in Jan. 2017 is calculated as

	Inventory Turnover (A: Jan. 2017 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jan. 2017 )	/ (	(Total Inventories (A: Jan. 2016 )	+	Total Inventories (A: Jan. 2017 ))	/	count )
=	1441.629	/ (	(467.905	+	453.994)	/	2 )
=	1441.629	/	460.9495
=	3.13

Sears Canada's Inventory Turnover for the quarter that ended in Apr. 2017 is calculated as

	Inventory Turnover (Q: Apr. 2017 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Apr. 2017 )	/ (	(Total Inventories (Q: Jan. 2017 )	+	Total Inventories (Q: Apr. 2017 ))	/	count )
=	291.211	/ (	(453.994	+	489.916)	/	2 )
=	291.211	/	471.955
=	0.62

Sears Canada (OTCPK:SRSCQ) 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.

Sears Canada's Days Inventory for the three months ended in Apr. 2017 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Apr. 2017 )	/	Cost of Goods Sold (Q: Apr. 2017 )	*	Days in Period
	=	471.955	/	291.211	*	365 / 4
	=	147.89

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.

Sears Canada's Inventory to Revenue for the quarter that ended in Apr. 2017 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Apr. 2017 )	/	Revenue (Q: Apr. 2017 )
	=	471.955	/	376.2
	=	1.25

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.

Sears Canada Inventory Turnover Related Terms

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Sears Canada (Sears Canada) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Sears Canada Inc (OTCPK:SRSCQ) » Definitions » Inventory Turnover

Traded in Other Exchanges

N/A

Address

290 Yonge Street, Suite 700, Toronto, ON, CAN, M5B 2C3

Website

http://www.sears.ca

Sears Canada Inc is in the sale of goods and services through the Company's Retail channels. It comprised of one reportable segment, Merchandising. Which includes its full-line department, Sears Home, Hometown, Outlet, Corbeil Electrique Inc. stores, and its Direct (catalog/internet) channel. It also includes service revenue related primarily to logistics services provided through the Company. Commission revenue includes travel, home improvement services, insurance, wireless and long-distance plans. Licensee fee revenue is comprised of payments received from licensees that operate within the Company stores.

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