SRSCQ (Sears Canada) Inventory Turnover: 0.62 (As of Apr. 2017)


What is Sears Canada Inventory Turnover?

Sears Canada SRSCQ -99.00% Inventory Turnover is 0.62 as of Apr. 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. Sears Canada's Cost of Goods Sold for the three months ended in Apr. 2017 was $291 Mil. Sears Canada's Average Total Inventories for the quarter that ended in Apr. 2017 was $472 Mil. Sears Canada's Inventory Turnover for the quarter that ended in Apr. 2017 was 0.62.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Sears Canada's Days Inventory for the three months ended in Apr. 2017 was 147.89.

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. Sears Canada's Inventory-to-Revenue for the quarter that ended in Apr. 2017 was 1.25.

Sears Canada  (OTCPK:SRSCQ) 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.

Sears Canada's Days Inventory for the three months ended in Apr. 2017 is calculated as:

Days Inventory =Average Total Inventories (Q: Apr. 2017 )/Cost of Goods Sold (Q: Apr. 2017 )*Days in Period
=471.955/291.211*365 / 4
=147.89

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.

Sears Canada's Inventory to Revenue for the quarter that ended in Apr. 2017 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Apr. 2017 ) / Revenue (Q: Apr. 2017 )
=471.955 / 376.2
=1.25

* 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.

Sears Canada Inventory Turnover Related Terms

Sears Canada Inventory Turnover Historical Data

* Premium members only.

The historical data trend for Sears Canada'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.

Sears Canada Inventory Turnover Chart

Sears Canada 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 3.32 2.97 3.08 3.03 3.13

Sears Canada Quarterly Data
Jul12 Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17
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 0.66 0.70 0.67 0.86 0.62

Sears Canada Inventory Turnover Calculation

Sears Canada'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 )
=1441.629 / ((467.905 + 453.994) / 2 )
=1441.629 / 460.9495
=3.13

Sears Canada's Inventory Turnover for the quarter that ended in Apr. 2017 is calculated as

Inventory Turnover (Q: Apr. 2017 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Apr. 2017 ) / ((Total Inventories (Q: Jan. 2017 ) + Total Inventories (Q: Apr. 2017 )) / count )
=291.211 / ((453.994 + 489.916) / 2 )
=291.211 / 471.955
=0.62

* 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 0.62 mean?
Sears Canada (SRSCQ) has a Inventory Turnover of 0.62 as of Apr. 2017. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Sears Canada and its competitors.
Is Sears Canada's Inventory Turnover too high?
Sears Canada's current Inventory Turnover is 0.62.
How does Sears Canada's Inventory Turnover compare to competitors?
Sears Canada's Inventory Turnover of 0.62 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 Sears Canada and its competitors. Sears Canada's current Inventory Turnover is 0.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sears Canada stock overvalued right now?
Sears Canada (SRSCQ) has a current Inventory Turnover of 0.62. The current Inventory Turnover is 0.62. 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 Sears Canada (SRSCQ), the current Inventory Turnover is 0.62 as of Apr. 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.

Sears Canada Business Description

Address 290 Yonge Street, Suite 700, Toronto, ON, CAN, M5B 2C3
Sears Canada Inc is in the sale of goods and services through the Company's Retail channels. It comprised of one reportable segment, Merchandising. Which includes its full-line department, Sears Home, Hometown, Outlet, Corbeil Electrique Inc. stores, and its Direct (catalog/internet) channel. It also includes service revenue related primarily to logistics services provided through the Company. Commission revenue includes travel, home improvement services, insurance, wireless and long-distance plans. Licensee fee revenue is comprised of payments received from licensees that operate within the Company stores.