BONTQ (The Bon-Ton Stores) Inventory Turnover: 0.48 (As of Oct. 2017)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

What is The Bon-Ton Stores Inventory Turnover?

The Bon-Ton Stores BONTQ -99.00% Inventory Turnover is 0.48 as of Oct. 2017.

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. The Bon-Ton Stores's Cost of Goods Sold for the three months ended in Oct. 2017 was $365 Mil. The Bon-Ton Stores's Average Total Inventories for the quarter that ended in Oct. 2017 was $755 Mil. The Bon-Ton Stores's Inventory Turnover for the quarter that ended in Oct. 2017 was 0.48.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. The Bon-Ton Stores's Days Inventory for the three months ended in Oct. 2017 was 188.70.

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. The Bon-Ton Stores's Inventory-to-Revenue for the quarter that ended in Oct. 2017 was 1.38.

The Bon-Ton Stores  (OTCPK:BONTQ) 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.

The Bon-Ton Stores's Days Inventory for the three months ended in Oct. 2017 is calculated as:

Days Inventory =Average Total Inventories (Q: Oct. 2017 )/Cost of Goods Sold (Q: Oct. 2017 )*Days in Period
=754.94/365.077*365 / 4
=188.70

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.

The Bon-Ton Stores's Inventory to Revenue for the quarter that ended in Oct. 2017 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Oct. 2017 ) / Revenue (Q: Oct. 2017 )
=754.94 / 545.337
=1.38

* 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.

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.

The Bon-Ton Stores Inventory Turnover Related Terms

The Bon-Ton Stores Inventory Turnover Historical Data

* Premium members only.

The historical data trend for The Bon-Ton Stores'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.

The Bon-Ton Stores Inventory Turnover Chart

The Bon-Ton Stores Annual Data
Trend Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.57 2.41 2.45 2.45 2.34

The Bon-Ton Stores Quarterly Data
Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17
Inventory Turnover 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 0.47 0.67 0.51 0.47 0.48

The Bon-Ton Stores Inventory Turnover Calculation

The Bon-Ton Stores'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 )
=1677.726 / ((711.699 + 724.454) / 2 )
=1677.726 / 718.0765
=2.34

The Bon-Ton Stores's Inventory Turnover for the quarter that ended in Oct. 2017 is calculated as

Inventory Turnover (Q: Oct. 2017 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Oct. 2017 ) / ((Total Inventories (Q: Jul. 2017 ) + Total Inventories (Q: Oct. 2017 )) / count )
=365.077 / ((658.218 + 851.662) / 2 )
=365.077 / 754.94
=0.48

* 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.

Frequently Asked Questions Learn more about Inventory Turnover →
What does a Inventory Turnover of 0.48 mean?
The Bon-Ton Stores (BONTQ) has a Inventory Turnover of 0.48 as of Oct. 2017. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on The Bon-Ton Stores and its competitors.
Is The Bon-Ton Stores' Inventory Turnover too high?
The Bon-Ton Stores' current Inventory Turnover is 0.48.
How does The Bon-Ton Stores' Inventory Turnover compare to DBHSF?
The Bon-Ton Stores' Inventory Turnover of 0.48 can be compared against companies in the Retail - Cyclical industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Inventory Turnover for a Retail - Cyclical company?
A good Inventory Turnover depends on the Retail - Cyclical industry context. However, Inventory Turnover should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Inventory Turnover mean?
A high Inventory Turnover can signal that a stock is expensive relative to its fundamentals. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on The Bon-Ton Stores and its competitors. The Bon-Ton Stores's current Inventory Turnover is 0.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Bon-Ton Stores stock overvalued right now?
The Bon-Ton Stores (BONTQ) has a current Inventory Turnover of 0.48. The current Inventory Turnover is 0.48. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Inventory Turnover calculated?
Inventory Turnover is calculated from a company's financial statements. For The Bon-Ton Stores (BONTQ), the current Inventory Turnover is 0.48 as of Oct. 2017. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

The Bon-Ton Stores Business Description

Address 2801 East Market Street, York, PA, USA, 17402
The Bon-Ton Stores Inc operates is a department store operator in the United States. It offers a range of brand-name fashion apparel and accessories for women, men, and children, through stores in the United States. Its nationally distributed brand assortment includes a range of labels in the apparel, accessories, footwear, cosmetics and home furnishings industries, such as Anne Klein, Calvin Klein, Carters, Chaps, Clarks, Clinique, Coach, Estee Lauder and Others.