GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Staples Inc (NAS:SPLS) » Definitions » Inventory-to-Revenue

Staples (Staples) Inventory-to-Revenue : 0.45 (As of Jul. 2017)


View and export this data going back to 1989. Start your Free Trial

What is Staples Inventory-to-Revenue?

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. Staples's Average Total Inventories for the quarter that ended in Jul. 2017 was $1,747 Mil. Staples's Revenue for the three months ended in Jul. 2017 was $3,905 Mil. Staples's Inventory-to-Revenue for the quarter that ended in Jul. 2017 was 0.45.

Staples's Inventory-to-Revenue for the quarter that ended in Jul. 2017 increased from Apr. 2017 (0.41) to Apr. 2017 (0.45)

An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:

1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Staples's Days Inventory for the three months ended in Jul. 2017 was 54.80.

Inventory Turnover measures how fast the company turns over its inventory within a year. Staples's Inventory Turnover for the quarter that ended in Jul. 2017 was 1.67.


Staples Inventory-to-Revenue Historical Data

The historical data trend for Staples's Inventory-to-Revenue 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.

* Premium members only.

Staples Inventory-to-Revenue Chart

Staples Annual Data
Trend Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17
Inventory-to-Revenue
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.10 0.10 0.11 0.11 0.10

Staples Quarterly Data
Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17
Inventory-to-Revenue 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 0.54 0.40 0.62 0.41 0.45

Competitive Comparison of Staples's Inventory-to-Revenue

For the Specialty Retail subindustry, Staples's Inventory-to-Revenue, along with its competitors' market caps and Inventory-to-Revenue data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Staples's Inventory-to-Revenue Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Staples's Inventory-to-Revenue distribution charts can be found below:

* The bar in red indicates where Staples's Inventory-to-Revenue falls into.



Staples Inventory-to-Revenue Calculation

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.

Staples's Inventory-to-Revenue for the fiscal year that ended in Jan. 2017 is calculated as

Inventory-to-Revenue (A: Jan. 2017 )
=Average Total Inventories / Revenue
=( (Total Inventories (A: Jan. 2016 ) + Total Inventories (A: Jan. 2017 )) / count ) / Revenue (A: Jan. 2017 )
=( (1791 + 1737) / 2 ) / 18247
=1764 / 18247
=0.10

Staples's Inventory-to-Revenue for the quarter that ended in Jul. 2017 is calculated as

Inventory-to-Revenue (Q: Jul. 2017 )
=Average Total Inventories / Revenue
=( (Total Inventories (Q: Apr. 2017 ) + Total Inventories (Q: Jul. 2017 )) / count ) / Revenue (Q: Jul. 2017 )
=( (1623 + 1870) / 2 ) / 3905
=1746.5 / 3905
=0.45

* 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.


Staples  (NAS:SPLS) Inventory-to-Revenue Explanation

An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:

1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.

Likewise, a decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:

1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the Inventory-to-Revenue, either one suggests that business's inventory levels and its cash flow are effectively managed.

More Related Terms:

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

Staples's Days Inventory for the three months ended in Jul. 2017 is calculated as:

Days Inventory=Average Total Inventories (Q: Jul. 2017 )/Cost of Goods Sold (Q: Jul. 2017 )*Days in Period
=1746.5/2908*365 / 4
=54.80

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

Staples's Inventory Turnover for the quarter that ended in Jul. 2017 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Jul. 2017 ) / Average Total Inventories (Q: Jul. 2017 )
=2908 / 1746.5
=1.67

* 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.


Staples Inventory-to-Revenue Related Terms

Thank you for viewing the detailed overview of Staples's Inventory-to-Revenue provided by GuruFocus.com. Please click on the following links to see related term pages.


Staples (Staples) Business Description

Traded in Other Exchanges
N/A
Address
Staples is an American retailer with online and delivery capabilities. Staples offers products in categories: technology, facilities and breakroom, furniture, safety, medical, copy and print, and Staples EasyTech services. Staples operates throughout North and South America, Europe, Asia, Australia, and New Zealand. The company divides its business into three segments: North American stores and online, North American commercial, and international operations. The product offering includes Staples, Quill, and other proprietary branded products. Staples' product price points are generally low.
Executives
Shira Goodman director, officer: CEO C/O CARMAX, 12800 TUCKAHOE CREEK PARKWAY, RICHMOND VA 23238
John F Lundgren director 1000 STANLEY DRIVE, NEW BRITAIN CT 06053
Deborah A Henretta director ONE RIVERFRONT PLAZA, CORNING NY 14831
Robert E Sulentic director C/O CBRE, 2100 MCKINNEY AVENUE, SUITE 1250, DALLAS TX 75201
Kunal Kamlani director 3333 BEVERLY ROAD, HOFFMAN ESTATES IL 60179
Christine T Komola officer: Chief Financial Officer 500 STAPLES DRIVE, FRAMINGHAM MA 01702
Drew G Faust director C/O GOLDMAN SACHS & CO. LLC, 200 WEST STREET, NEW YORK NY 10282
Curtis F Feeny director C/O CBRE, 2100 MCKINNEY AVENUE, SUITE 1250, DALLAS TX 75201
Joseph Doody officer: Vice Chairman CASELLA WASTE SYSTEMS INC, 25 GREENS HILL LANE PO BOX 866, RUTLAND VT 05701
Carol Meyrowitz director TJX COMPANIES INC, 770 COCHITUATE RD, FRAMINGHAM MA 01701
Ronald Sargent director, officer: Chairman and CEO 1014 VINE STREET, CINCINNATI OH 45202
Demos Parneros officer: President, NA Stores & Online 483 BAY ST, 7TH FL NORTH TOWER, TORONTOON A1 999999999
Rowland Moriarty director 200 CLARENDON ST T33, BOSTON MA 02116
Raul Vazquez director 500 STAPLES DR., FRAMINGHAM MA 01702
Basil Anderson director

Staples (Staples) Headlines

From GuruFocus

GoodHaven Funds Comments on Staples

By Holly LaFon Holly LaFon 01-27-2017

Staples Offers Opportunity With Good Value and Activism

By Quantified Alpha Quantified Alpha 01-26-2015

SPLS - Tough Q2, Thesis Is Unchanged

By The Science of Hitting The Science of Hitting 09-03-2013

Why I'm Selling (Most Of) My Staples Position

By The Science of Hitting The Science of Hitting 01-20-2015

Staples - Mixed Results Highlight Struggles & Opportunities Ahead

By The Science of Hitting The Science of Hitting 11-24-2013

Staples Is a Buy on Busted M&A Deal

By Holmes Osborne, CFA Holmes Osborne, CFA 07-27-2016

Keeley Small Cap Value Fund Q1 2015 Commentary

By Canadian Value Canadian Value 05-28-2015

Staples Reports A Dull Q1

By Business Reports Business Reports 05-21-2015