RONA (TSX:RON.PR.A.PFD) Total Inventories : C$1,069.92 Mil (As of Mar. 2016)

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What is RONA Total Inventories?

RONA's total inventories for the quarter that ended in Mar. 2016 was C$1,069.92 Mil. RONA's average total inventories from the quarter that ended in Dec. 2015 to the quarter that ended in Mar. 2016 was C$1,008.88 Mil.

In Ben Graham's calculation of Net-Net Working Capital, inventory is only considered worth half of its book value. RONA's Net-Net Working Capital per share for the quarter that ended in Mar. 2016 was C$N/A.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. RONA's Days Inventory for the three months ended in Mar. 2016 was 159.77.

Inventory Turnover measures how fast the company turns over its inventory within a year. RONA's Inventory Turnover for the quarter that ended in Mar. 2016 was 0.57.

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. RONA's Inventory-to-Revenue for the quarter that ended in Mar. 2016 was 1.23.

RONA Total Inventories Historical Data

The historical data trend for RONA's Total Inventories 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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RONA Total Inventories Chart

RONA Annual Data

Trend

Dec06

Dec07

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Dec11

Dec12

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Dec15

Total Inventories

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840.29

890.44

738.75

819.68

947.83

RONA Quarterly Data
	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16
Total Inventories	Get a 7-Day Free Trial															964.67	921.32	872.73	947.83	1,069.92

RONA Total Inventories Calculation

Total Inventories includes the raw materials, work-in-process goods and completely finished goods of a company. It is a portion of a company's current assets.

RONA (TSX:RON.PR.A.PFD) Total Inventories Explanation

Inventory control is an important part of business operation. If a company does not have enough inventory, it may not be able to meet customers' required delivery time. If it has too much inventory, the cost of holding the inventory can be high.

1. In Ben Graham's calculation of Net-Net Working Capital (NNWC), inventory is only considered worth half of its book value.

RONA's Net-Net Working Capital Per Share for the quarter that ended in Mar. 2016 is

	Net-Net Working Capital Per Share (Q: Mar. 2016 )
=	(Cash And Cash Equivalents	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(1.618	+	0.75 * 0	+	0.5 * 1069.919	-	1106.833
-	0	-	-1.072)	/	0
=	N/A

2. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

RONA's Days Inventory for the three months ended in Mar. 2016 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2016 )	/	Cost of Goods Sold (Q: Mar. 2016 )	*	Days in Period
	=	1008.8755	/	576.205	*	365 / 4
	=	159.77

3. Inventory Turnover measures how fast the company turns over its inventory within a year.

RONA's Inventory Turnover for the quarter that ended in Mar. 2016 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Mar. 2016 )	/	Average Total Inventories (Q: Mar. 2016 )
	=	576.205	/	1008.8755
	=	0.57

4. 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.

RONA's Inventory to Revenue for the quarter that ended in Mar. 2016 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2016 )	/	Revenue (Q: Mar. 2016 )
	=	1008.8755	/	819.216
	=	1.23

Be Aware

Manufacturers with durable competitive advantages have the advantage that the products they sell do not change, and therefore will never become obsolete. Buffett likes this advantage.

When identifying manufacturers with durable competitive advantage, look for inventory and net earnings that rise correspondingly. This indicates that the company is finding profitable ways to increase sales which called for an increase in inventory.

Manufacturers with inventories that spike up and down are indicative of competitive industries subject to boom and bust.

RONA Total Inventories Related Terms

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RONA Business Description

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GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » RONA Inc (TSX:RON.PR.A.PFD) » Definitions » Total Inventories

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Address

Website

http://www.rona.ca

Rona Inc founded on October 6, 1939, is engaged in the distribution and retail of hardware, home improvement and gardening products in Canada. The Company has three segments of activity in hardware, renovation and construction marketplace: distribution, retail and commercial and professional. The Company provides automotive products, building materials and accessories, decoration products, gutter and accessories, hand tools, hardware products, horticulture products, kitchen and bathroom products, lighting and electrical products, paint products, plumbing products, power tools, pre-seasonal products, storage and house ware products, tiling products, winter season products, and gift cards, as well as heating, ventilation, and air conditioning (HVAC) products. The Company also provides construction plans. The Company's model comprises of various store formats that address specific markets or consumer sectors and three ownership formulas.

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