I was able to find Sears Inventory turn over and Days in Inventory ratios from the S&P website ; however, I cannot find the industry average for these two ratios. Can you point me to where I might be able to find them?
There's two ways to approach this. You can either find industry averages or calculate a peer group average. Regardless of the approach you need to decide which is the most appropriate companies or industry class. Sears primary SIC code is 5311 (department stores) and NAICS code 443111 (Household appliance stores). We have a three books that include efficiency ratios: RMA Annual Statement Studies (uses NAICS), Almanac of Business and Industrial Ratios (uses NAICS) and D&B Industry Norms and Key Business Ratios. Only the latter reports for Sears primary SIC code. Unfortunately it doesn't report days in inventory, only turnover. For establishments with 5 mil to 25 mil in assets the upper quartile Sales to Inventory was 8.2, med 5.9 and lower 4.1 for 2006 (most recently reported). This may not be an appropriate peer group given Sear's assets. BizMiner also reports days inventory and inventory turnover for Department stories. I'm attaching that report. This report is for Department stores with sales in excess of 500 million.
You may want to construct your own peer group by looking at and averaging the days inventory and turnover for such companies as Wal-Mart, Kohl's, Macy's ect. You can do this by using the S&P or Lexis-Nexis and checking the financials. Hope this helps.
Post a Question
And receive answers from librarians and others.
Last Modified: Wednesday, June 25th, 2014
800 Lancaster Avenue Villanova, PA 19085 (610) 519-6000