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Dollarama (FRA:DR3) Inventory Turnover : 0.94 (As of Jan. 2024)


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What is Dollarama 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. Dollarama's Cost of Goods Sold for the three months ended in Jan. 2024 was €602 Mil. Dollarama's Average Total Inventories for the quarter that ended in Jan. 2024 was €638 Mil. Dollarama's Inventory Turnover for the quarter that ended in Jan. 2024 was 0.94.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Dollarama's Days Inventory for the three months ended in Jan. 2024 was 96.70.

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. Dollarama's Inventory-to-Revenue for the quarter that ended in Jan. 2024 was 0.57.


Dollarama Inventory Turnover Historical Data

The historical data trend for Dollarama'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.

* Premium members only.

Dollarama Inventory Turnover Chart

Dollarama Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.62 3.49 4.14 3.67 3.45

Dollarama Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Inventory Turnover 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 0.80 0.78 0.89 0.88 0.94

Dollarama Inventory Turnover Calculation

Dollarama's Inventory Turnover for the fiscal year that ended in Jan. 2024 is calculated as

Inventory Turnover (A: Jan. 2024 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Jan. 2024 ) / ((Total Inventories (A: Jan. 2023 ) + Total Inventories (A: Jan. 2024 )) / count )
=2225.35 / ((661.791 + 627.008) / 2 )
=2225.35 / 644.3995
=3.45

Dollarama's Inventory Turnover for the quarter that ended in Jan. 2024 is calculated as

Inventory Turnover (Q: Jan. 2024 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Jan. 2024 ) / ((Total Inventories (Q: Oct. 2023 ) + Total Inventories (Q: Jan. 2024 )) / count )
=602.213 / ((649.414 + 627.008) / 2 )
=602.213 / 638.211
=0.94

* 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.


Dollarama  (FRA:DR3) 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.

Dollarama's Days Inventory for the three months ended in Jan. 2024 is calculated as:

Days Inventory =Average Total Inventories (Q: Jan. 2024 )/Cost of Goods Sold (Q: Jan. 2024 )*Days in Period
=638.211/602.213*365 / 4
=96.70

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.

Dollarama's Inventory to Revenue for the quarter that ended in Jan. 2024 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Jan. 2024 ) / Revenue (Q: Jan. 2024 )
=638.211 / 1121.03
=0.57

* 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.


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.


Dollarama Inventory Turnover Related Terms

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Dollarama (FRA:DR3) Business Description

Traded in Other Exchanges
Address
5805 Royalmount Avenue, Montreal, QC, CAN, H4P 0A1
Dollarama Inc is a Canada-based company principally engaged in operating discount retail stores. The company provides a broad range of everyday consumer products, general merchandise, and seasonal items both in-store and online. General merchandise and consumer products jointly account for the majority of the company's product offerings. The company's stores are throughout Canada, generally located in convenient locations, such as metropolitan areas, midsize cities, and small towns. All the stores are owned and operated by the company.

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