Pier 1 Imports (STU:PJ1A) Inventory Turnover : 0.76 (As of Nov. 2019)

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What is Pier 1 Imports 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. Pier 1 Imports's Cost of Goods Sold for the three months ended in Nov. 2019 was €225 Mil. Pier 1 Imports's Average Total Inventories for the quarter that ended in Nov. 2019 was €297 Mil. Pier 1 Imports's Inventory Turnover for the quarter that ended in Nov. 2019 was 0.76.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Pier 1 Imports's Days Inventory for the three months ended in Nov. 2019 was 120.50.

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. Pier 1 Imports's Inventory-to-Revenue for the quarter that ended in Nov. 2019 was 0.91.

Pier 1 Imports Inventory Turnover Historical Data

The historical data trend for Pier 1 Imports'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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Pier 1 Imports Inventory Turnover Chart

Pier 1 Imports Annual Data

Trend

Feb10

Feb11

Feb12

Feb13

Feb14

Feb15

Feb16

Feb17

Feb18

Feb19

Inventory Turnover

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2.82

2.72

2.86

2.81

3.30

Pier 1 Imports Quarterly Data
	Feb15	May15	Aug15	Nov15	Feb16	May16	Aug16	Nov16	Feb17	May17	Aug17	Nov17	Feb18	May18	Aug18	Nov18	Feb19	May19	Aug19	Nov19
Inventory Turnover	Get a 7-Day Free Trial															0.74	0.83	0.70	0.78	0.76

Pier 1 Imports Inventory Turnover Calculation

Pier 1 Imports's Inventory Turnover for the fiscal year that ended in Feb. 2019 is calculated as

	Inventory Turnover (A: Feb. 2019 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Feb. 2019 )	/ (	(Total Inventories (A: Feb. 2018 )	+	Total Inventories (A: Feb. 2019 ))	/	count )
=	970.892	/ (	(281.426	+	306.222)	/	2 )
=	970.892	/	293.824
=	3.30

Pier 1 Imports's Inventory Turnover for the quarter that ended in Nov. 2019 is calculated as

	Inventory Turnover (Q: Nov. 2019 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Nov. 2019 )	/ (	(Total Inventories (Q: Aug. 2019 )	+	Total Inventories (Q: Nov. 2019 ))	/	count )
=	224.572	/ (	(295.449	+	297.669)	/	2 )
=	224.572	/	296.559
=	0.76

Pier 1 Imports (STU:PJ1A) 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.

Pier 1 Imports's Days Inventory for the three months ended in Nov. 2019 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Nov. 2019 )	/	Cost of Goods Sold (Q: Nov. 2019 )	*	Days in Period
	=	296.559	/	224.572	*	365 / 4
	=	120.50

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.

Pier 1 Imports's Inventory to Revenue for the quarter that ended in Nov. 2019 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Nov. 2019 )	/	Revenue (Q: Nov. 2019 )
	=	296.559	/	324.366
	=	0.91

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.

Pier 1 Imports Inventory Turnover Related Terms

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Pier 1 Imports (STU:PJ1A) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Pier 1 Imports Inc (STU:PJ1A) » Definitions » Inventory Turnover

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Traded in Other Exchanges

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Address

100 Pier 1 Place, Fort Worth, TX, USA, 76102

Website

https://www.pier1.com

Pier 1 Imports Inc is a United-States-based retailer of decorative accessories, furniture, candles, homeware, gifts and seasonal products. The company operates through retail stores and an e-commerce website under the brand Pier 1 Imports. Most of the company's stores are located in the U.S., followed with a few stores in Canada. The company also provides products and licenses the Pier 1 Imports brand to Grupo Sanborns, which operates a number of stores in Mexico and El Salvador. The company sells merchandise produced in a number of countries, such as China, India, Vietnam, Indonesia, the U.S., and others.

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