Dixons Retail (LSE:DXNS) Inventory Turnover : 8.10 (As of Apr. 2014)

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What is Dixons Retail 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. Dixons Retail's Cost of Goods Sold for the six months ended in Apr. 2014 was £6,678 Mil. Dixons Retail's Average Total Inventories for the quarter that ended in Apr. 2014 was £825 Mil. Dixons Retail's Inventory Turnover for the quarter that ended in Apr. 2014 was 8.10.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Dixons Retail's Days Inventory for the six months ended in Apr. 2014 was 22.54.

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. Dixons Retail's Inventory-to-Revenue for the quarter that ended in Apr. 2014 was 0.22.

Dixons Retail Inventory Turnover Historical Data

The historical data trend for Dixons Retail'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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Dixons Retail Inventory Turnover Chart

Dixons Retail Annual Data

Trend

Apr05

Apr06

Apr07

May08

Apr09

Apr10

Apr11

Apr12

Apr13

Apr14

Inventory Turnover

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8.12

8.36

7.44

8.45

Dixons Retail Semi-Annual Data
	Oct07	Oct08	Apr09	Oct09	Apr10	Oct10	Apr11	Oct11	Apr12	Oct12	Apr13	Oct13	Apr14
Inventory Turnover	Get a 7-Day Free Trial								8.14	-	7.09	-	8.10

Dixons Retail Inventory Turnover Calculation

Dixons Retail's Inventory Turnover for the fiscal year that ended in Apr. 2014 is calculated as

	Inventory Turnover (A: Apr. 2014 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Apr. 2014 )	/ (	(Total Inventories (A: Apr. 2013 )	+	Total Inventories (A: Apr. 2014 ))	/	count )
=	6678.3	/ (	(895.4	+	684.4)	/	2 )
=	6678.3	/	789.9
=	8.45

Dixons Retail's Inventory Turnover for the quarter that ended in Apr. 2014 is calculated as

	Inventory Turnover (Q: Apr. 2014 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Apr. 2014 )	/ (	(Total Inventories (Q: Oct. 2013 )	+	Total Inventories (Q: Apr. 2014 ))	/	count )
=	6678.3	/ (	(965.3	+	684.4)	/	2 )
=	6678.3	/	824.85
=	8.10

Dixons Retail (LSE:DXNS) 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.

Dixons Retail's Days Inventory for the six months ended in Apr. 2014 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Apr. 2014 )	/	Cost of Goods Sold (Q: Apr. 2014 )	*	Days in Period
	=	824.85	/	6678.3	*	365 / 2
	=	22.54

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.

Dixons Retail's Inventory to Revenue for the quarter that ended in Apr. 2014 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Apr. 2014 )	/	Revenue (Q: Apr. 2014 )
	=	824.85	/	3786.3
	=	0.22

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.

Dixons Retail Inventory Turnover Related Terms

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Dixons Retail (LSE:DXNS) Business Description

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http://www.dixonsretail.com

Dixons Retail PLC is an electrical retailer and service company which sell consumer electronics, personal computers, domestic appliances, photographic equipment, communication products and related services. The Group's reportable segments are; UK & Ireland comprises of electrical and computing retail chains as well as business to business activities. The division is engaged in multi-channel retail sales, associated peripherals and services and related financial and after sales services and also in business to business sales of computer hardware and software; Nordics operates in Norway, Sweden, Finland, Denmark, Iceland, Greenland and the Faroe Islands. The division engages in multi-channel retail sales and provided related product support services to its customers; Other International comprises operations in Italy, Greece, the Czech Republic, Slovakia, Turkey and the business to be closed in Spain which is excluded from underlying results. The Other International division engages in retail sales and provides related product support services to its customers in all of its markets; and Pure play e-commerce comprises pure play online retailers and operates in all of the countries in which the other divisions operate and across Europe.

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