Sears Holdings (Sears Holdings) Inventory Turnover : 0.92 (As of Oct. 2018)

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What is Sears Holdings 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. Sears Holdings's Cost of Goods Sold for the three months ended in Oct. 2018 was $2,315.00 Mil. Sears Holdings's Average Total Inventories for the quarter that ended in Oct. 2018 was $2,519.00 Mil. Sears Holdings's Inventory Turnover for the quarter that ended in Oct. 2018 was 0.92.

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-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 Inventory-to-Revenue for the quarter that ended in Oct. 2018 was 0.92.

Sears Holdings Inventory Turnover Historical Data

The historical data trend for Sears Holdings'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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Sears Holdings Inventory Turnover Chart

Sears Holdings Annual Data

Trend

Jan09

Jan10

Jan11

Jan12

Jan13

Jan14

Jan15

Jan16

Jan17

Jan18

Inventory Turnover

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3.76

4.02

3.82

3.90

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 Turnover	Get a 7-Day Free Trial															1.19	0.81	0.89	0.92	-

Sears Holdings Inventory Turnover Calculation

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

	Inventory Turnover (A: Jan. 2018 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jan. 2018 )	/ (	(Total Inventories (A: Jan. 2017 )	+	Total Inventories (A: Jan. 2018 ))	/	count )
=	13175	/ (	(3959	+	2798)	/	2 )
=	13175	/	3378.5
=	3.90

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

	Inventory Turnover (Q: Oct. 2018 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Oct. 2018 )	/ (	(Total Inventories (Q: Jul. 2018 )	+	Total Inventories (Q: Oct. 2018 ))	/	count )
=	2315	/ (	(2714	+	2324)	/	2 )
=	2315	/	2519
=	0.92

Sears Holdings (NAS:SHLDW) 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 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-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 Inventory to Revenue for the quarter that ended in Oct. 2018 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Oct. 2018 )	/	Revenue (Q: Oct. 2018 )
	=	2519	/	2742
	=	0.92

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 Holdings Inventory Turnover 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 Turnover

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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.