Shoppers Drug Mart (FRA:SDZ) Inventory Turnover : 0.73 (As of Dec. 2013)

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What is Shoppers Drug Mart Inventory Turnover?

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. Shoppers Drug Mart's Cost of Goods Sold for the three months ended in Dec. 2013 was €1,152 Mil. Shoppers Drug Mart's Average Total Inventories for the quarter that ended in Dec. 2013 was €1,587 Mil. Shoppers Drug Mart's Inventory Turnover for the quarter that ended in Dec. 2013 was 0.73.

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-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 Inventory-to-Revenue for the quarter that ended in Dec. 2013 was 0.84.

Shoppers Drug Mart Inventory Turnover Historical Data

The historical data trend for Shoppers Drug Mart'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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Shoppers Drug Mart Inventory Turnover Chart

Shoppers Drug Mart Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Inventory Turnover

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5.11

3.52

3.21

2.88

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 Turnover	Get a 7-Day Free Trial															0.77	0.71	0.74	0.94	0.73

Shoppers Drug Mart Inventory Turnover Calculation

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

	Inventory Turnover (A: Dec. 2013 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2013 )	/ (	(Total Inventories (A: Dec. 2012 )	+	Total Inventories (A: Dec. 2013 ))	/	count )
=	4661.278	/ (	(1654.016	+	1577.756)	/	2 )
=	4661.278	/	1615.886
=	2.88

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

	Inventory Turnover (Q: Dec. 2013 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2013 )	/ (	(Total Inventories (Q: Sep. 2013 )	+	Total Inventories (Q: Dec. 2013 ))	/	count )
=	1151.787	/ (	(1595.529	+	1577.756)	/	2 )
=	1151.787	/	1586.6425
=	0.73

Shoppers Drug Mart (FRA:SDZ) 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.

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-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 Inventory to Revenue for the quarter that ended in Dec. 2013 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2013 )	/	Revenue (Q: Dec. 2013 )
	=	1586.6425	/	1884.716
	=	0.84

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.

Shoppers Drug Mart Inventory Turnover Related Terms

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Shoppers Drug Mart (FRA:SDZ) Business Description

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

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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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