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PetSmart (FRA:PEM) Inventory-to-Revenue : 0.46 (As of Oct. 2014)


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What is PetSmart Inventory-to-Revenue?

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. PetSmart's Average Total Inventories for the quarter that ended in Oct. 2014 was €631 Mil. PetSmart's Revenue for the three months ended in Oct. 2014 was €1,372 Mil. PetSmart's Inventory-to-Revenue for the quarter that ended in Oct. 2014 was 0.46.

PetSmart's Inventory-to-Revenue for the quarter that ended in Oct. 2014 increased from Jul. 2014 (0.45) to Jul. 2014 (0.46)

An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:

1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. PetSmart's Days Inventory for the three months ended in Oct. 2014 was 59.51.

Inventory Turnover measures how fast the company turns over its inventory within a year. PetSmart's Inventory Turnover for the quarter that ended in Oct. 2014 was 1.53.


PetSmart Inventory-to-Revenue Historical Data

The historical data trend for PetSmart's Inventory-to-Revenue 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.

* Premium members only.

PetSmart Inventory-to-Revenue Chart

PetSmart Annual Data
Trend Jan06 Jan07 Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15
Inventory-to-Revenue
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.10 0.10 0.10 0.10 0.10

PetSmart Quarterly Data
Apr10 Jul10 Oct10 Jan11 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15
Inventory-to-Revenue Get a 7-Day Free Trial 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 0.43 0.45 0.45 0.46 0.41

Competitive Comparison of PetSmart's Inventory-to-Revenue

For the Specialty Retail subindustry, PetSmart's Inventory-to-Revenue, along with its competitors' market caps and Inventory-to-Revenue data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


PetSmart's Inventory-to-Revenue Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, PetSmart's Inventory-to-Revenue distribution charts can be found below:

* The bar in red indicates where PetSmart's Inventory-to-Revenue falls into.



PetSmart Inventory-to-Revenue Calculation

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.

PetSmart's Inventory-to-Revenue for the fiscal year that ended in Jan. 2014 is calculated as

Inventory-to-Revenue (A: Jan. 2014 )
=Average Total Inventories / Revenue
=( (Total Inventories (A: Jan. 2013 ) + Total Inventories (A: Jan. 2014 )) / count ) / Revenue (A: Jan. 2014 )
=( (510.676 + 543.382) / 2 ) / 5076.804
=527.029 / 5076.804
=0.10

PetSmart's Inventory-to-Revenue for the quarter that ended in Oct. 2014 is calculated as

Inventory-to-Revenue (Q: Oct. 2014 )
=Average Total Inventories / Revenue
=( (Total Inventories (Q: Jul. 2014 ) + Total Inventories (Q: Oct. 2014 )) / count ) / Revenue (Q: Oct. 2014 )
=( (586.296 + 676.441) / 2 ) / 1372.163
=631.3685 / 1372.163
=0.46

* 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.


PetSmart  (FRA:PEM) Inventory-to-Revenue Explanation

An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:

1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.

Likewise, a decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:

1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the Inventory-to-Revenue, either one suggests that business's inventory levels and its cash flow are effectively managed.

More Related Terms:

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

PetSmart's Days Inventory for the three months ended in Oct. 2014 is calculated as:

Days Inventory=Average Total Inventories (Q: Oct. 2014 )/Cost of Goods Sold (Q: Oct. 2014 )*Days in Period
=631.3685/968.066*365 / 4
=59.51

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

PetSmart's Inventory Turnover for the quarter that ended in Oct. 2014 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Oct. 2014 ) / Average Total Inventories (Q: Oct. 2014 )
=968.066 / 631.3685
=1.53

* 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.


PetSmart Inventory-to-Revenue Related Terms

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PetSmart (FRA:PEM) Business Description

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Address
Website
PetSmart Inc was incorporated in the State of Delaware in 1986. The Company provides specialty products, services and solutions for the lifetime needs of pets in North America. It offers a broad selection of products for all the life stages of pets, as well as various pet services including professional grooming, training, day camp for dogs and boarding. It also offers pet products through its website, PetSmart.com. As of 2 February 2014, it operated 1,333 retail stores and had full-service veterinary hospitals in 844 of its stores. MMI Holdings, Inc., through a wholly owned subsidiary, Medical Management International, Inc., operated 837 of the veterinary hospitals under the registered trade name of "Banfield, The Pet Hospital." The remaining 7 hospitals are operated by other third parties in Canada. The Company opened 55 net new stores in 2013 and at the end of the year operated 1,333 retail stores in the United States, Puerto Rico and Canada. Its stores typically range in size from 12,000 to 27,500 square feet and carry a broad selection of high-quality pet products at everyday low prices. It offers approximately 11,000 distinct items in stores and 9,000 additional items on its website, PetSmart.com, including nationally recognized brand names, as well as an extensive selection of proprietary brands across a range of product categories. All the Company's stores feature pet styling salons that provide high-quality grooming services and offer comprehensive pet training services. Its PetsHotels provide boarding for dogs and cats, which includes 24-hour supervision by caregivers who are trained to provide personalized pet care, temperature controlled rooms and suites, daily specialty treats and play time, as well as day camp for dogs. As of 3 February 2014, it operated 199 PetsHotels. The Company's trademarks include PetSmart, PetSmart.com, PetSmart PetsHotel, PetPerks, and Where Pets Are Family, as well as many others.

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