Shoppers Drug Mart (FRA:SDZ) Inventory-to-Revenue : 0.84 (As of Dec. 2013)

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What is Shoppers Drug Mart 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. Shoppers Drug Mart's Average Total Inventories for the quarter that ended in Dec. 2013 was €1,587 Mil. Shoppers Drug Mart's Revenue for the three months ended in Dec. 2013 was €1,885 Mil. Shoppers Drug Mart's Inventory-to-Revenue for the quarter that ended in Dec. 2013 was 0.84.

Shoppers Drug Mart's Inventory-to-Revenue for the quarter that ended in Dec. 2013 increased from Sep. 2013 (0.66) to Sep. 2013 (0.84)

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. Shoppers Drug Mart's Days Inventory for the three months ended in Dec. 2013 was 125.70.

Inventory Turnover measures how fast the company turns over its inventory within a year. Shoppers Drug Mart's Inventory Turnover for the quarter that ended in Dec. 2013 was 0.73.

Shoppers Drug Mart Inventory-to-Revenue Historical Data

The historical data trend for Shoppers Drug Mart'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.

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Shoppers Drug Mart Inventory-to-Revenue Chart

Shoppers Drug Mart Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Inventory-to-Revenue

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0.17

0.18

0.19

0.21

Shoppers Drug Mart Quarterly Data
	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13
Inventory-to-Revenue	Get a 7-Day Free Trial															0.79	0.86	0.83	0.66	0.84

Competitive Comparison of Shoppers Drug Mart's Inventory-to-Revenue

For the Pharmaceutical Retailers subindustry, Shoppers Drug Mart'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.

Shoppers Drug Mart's Inventory-to-Revenue Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Shoppers Drug Mart's Inventory-to-Revenue distribution charts can be found below:

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

Shoppers Drug Mart Inventory-to-Revenue Calculation

Shoppers Drug Mart's Inventory-to-Revenue for the fiscal year that ended in Dec. 2013 is calculated as

	Inventory-to-Revenue (A: Dec. 2013 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (A: Dec. 2012 )	+	Total Inventories (A: Dec. 2013 ))	/	count )	/	Revenue (A: Dec. 2013 )
=	( (1654.016	+	1577.756)	/	2 )	/	7587.265
=	1615.886					/	7587.265
=	0.21

Shoppers Drug Mart's Inventory-to-Revenue for the quarter that ended in Dec. 2013 is calculated as

	Inventory-to-Revenue (Q: Dec. 2013 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (Q: Sep. 2013 )	+	Total Inventories (Q: Dec. 2013 ))	/	count )	/	Revenue (Q: Dec. 2013 )
=	( (1595.529	+	1577.756)	/	2 )	/	1884.716
=	1586.6425					/	1884.716
=	0.84

Shoppers Drug Mart (FRA:SDZ) Inventory-to-Revenue Explanation

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

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.

Shoppers Drug Mart's Days Inventory for the three months ended in Dec. 2013 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2013 )	/	Cost of Goods Sold (Q: Dec. 2013 )	*	Days in Period
	=	1586.6425	/	1151.787	*	365 / 4
	=	125.70

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

Shoppers Drug Mart's Inventory Turnover for the quarter that ended in Dec. 2013 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Dec. 2013 )	/	Average Total Inventories (Q: Dec. 2013 )
	=	1151.787	/	1586.6425
	=	0.73

Shoppers Drug Mart Inventory-to-Revenue Related Terms

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Shoppers Drug Mart Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Shoppers Drug Mart Corporation (FRA:SDZ) » Definitions » Inventory-to-Revenue

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Address

Website

http://www.shoppersdrugmart.ca

Shoppers Drug Mart Corporation was founded in 1962. The Company is the licensor of full-service retail drug stores operating under the name Shoppers Drug Mart (Pharmaprix in QuÃ©bec). The stores are owned and operated by the Company's licensed Associate-owners who have helped build a brand that is synonymous with exceptional service, value and trust. The Company also licenses or owns more than 55 medical clinic pharmacies operating under the name Shoppers Simply Pharmacy (Pharmaprix Simplement SantÃ© in QuÃ©bec) and six luxury beauty destinations operating as Murale. The Company owns and operates 62 Shoppers Home Health Care stores, which are engaged in the sale and service of assisted-living devices, medical equipment, home-care products and durable mobility equipment to institutional and retail customers. In addition to its retail store network, the Company owns Shoppers Drug Mart Specialty Health Network Inc., a provider of specialty drug distribution, pharmacy and comprehensive patient support services, and MediSystem Technologies Inc., a provider of pharmaceutical products and services to long-term care facilities.

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