Sears Holdings (Sears Holdings) Inventory-to-Revenue : 0.92 (As of Oct. 2018)

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What is Sears Holdings 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. Sears Holdings's Average Total Inventories for the quarter that ended in Oct. 2018 was $2,519.00 Mil. Sears Holdings's Revenue for the three months ended in Oct. 2018 was $2,742.00 Mil. Sears Holdings's Inventory-to-Revenue for the quarter that ended in Oct. 2018 was 0.92.

Sears Holdings's Inventory-to-Revenue for the quarter that ended in Oct. 2018 increased from Jul. 2018 (0.87) to Jul. 2018 (0.92)

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. Sears Holdings's Days Inventory for the three months ended in Oct. 2018 was 99.29.

Inventory Turnover measures how fast the company turns over its inventory within a year. Sears Holdings's Inventory Turnover for the quarter that ended in Oct. 2018 was 0.92.

Sears Holdings Inventory-to-Revenue Historical Data

The historical data trend for Sears Holdings'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.

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Sears Holdings Inventory-to-Revenue Chart

Sears Holdings Annual Data

Trend

Jan09

Jan10

Jan11

Jan12

Jan13

Jan14

Jan15

Jan16

Jan17

Jan18

Inventory-to-Revenue

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0.20

0.19

0.20

0.21

0.20

Sears Holdings Quarterly Data
	Apr14	Jul14	Oct14	Jan15	Apr15	Jul15	Oct15	Jan16	Apr16	Jul16	Oct16	Jan17	Apr17	Jul17	Oct17	Jan18	Apr18	Jul18	Oct18	Oct19
Inventory-to-Revenue	Get a 7-Day Free Trial															0.67	0.98	0.87	0.92	-

Competitive Comparison of Sears Holdings's Inventory-to-Revenue

For the Department Stores subindustry, Sears Holdings'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.

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

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

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

Sears Holdings Inventory-to-Revenue Calculation

Sears Holdings's Inventory-to-Revenue for the fiscal year that ended in Jan. 2018 is calculated as

	Inventory-to-Revenue (A: Jan. 2018 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (A: Jan. 2017 )	+	Total Inventories (A: Jan. 2018 ))	/	count )	/	Revenue (A: Jan. 2018 )
=	( (3959	+	2798)	/	2 )	/	16702
=	3378.5					/	16702
=	0.20

Sears Holdings's Inventory-to-Revenue for the quarter that ended in Oct. 2018 is calculated as

	Inventory-to-Revenue (Q: Oct. 2018 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (Q: Jul. 2018 )	+	Total Inventories (Q: Oct. 2018 ))	/	count )	/	Revenue (Q: Oct. 2018 )
=	( (2714	+	2324)	/	2 )	/	2742
=	2519					/	2742
=	0.92

Sears Holdings (NAS:SHLDW) Inventory-to-Revenue Explanation

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

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.

Sears Holdings's Days Inventory for the three months ended in Oct. 2018 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Oct. 2018 )	/	Cost of Goods Sold (Q: Oct. 2018 )	*	Days in Period
	=	2519	/	2315	*	365 / 4
	=	99.29

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

Sears Holdings's Inventory Turnover for the quarter that ended in Oct. 2018 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Oct. 2018 )	/	Average Total Inventories (Q: Oct. 2018 )
	=	2315	/	2519
	=	0.92

Sears Holdings Inventory-to-Revenue Related Terms

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Sears Holdings (Sears Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Sears Holdings Corp (NAS:SHLDW) » Definitions » Inventory-to-Revenue

Comparable Companies

Traded in Other Exchanges

N/A

Address

3333 Beverly Road, Hoffman Estates, IL, USA, 60179

Website

http://www.searsholdings.com

Sears Holdings Corporation is an America-based retailer that integrates the digital and physical shopping experiences for consumers. The company operates through retail store brands Sears and Kmart. Sears provides a broad range of home merchandise, apparel, automotive products and home services through both online and offline channels across the United States, and it owns proprietary brands, including Kenmore, Craftsman, and DieHard. Kmart is a mass merchandising firm, offering quality products to customers through exclusive brands. The majority of the company's revenue comes from the domestic market.