GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Distribution » Ferguson PLC (NYSE:FERG) » Definitions » Inventory-to-Revenue

Ferguson (Ferguson) Inventory-to-Revenue : 0.55 (As of Apr. 2024)


View and export this data going back to 2010. Start your Free Trial

What is Ferguson 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. Ferguson's Average Total Inventories for the quarter that ended in Apr. 2024 was $4,042 Mil. Ferguson's Revenue for the three months ended in Apr. 2024 was $7,308 Mil. Ferguson's Inventory-to-Revenue for the quarter that ended in Apr. 2024 was 0.55.

Ferguson's Inventory-to-Revenue for the quarter that ended in Apr. 2024 declined from Jan. 2024 (0.61) to Jan. 2024 (0.55)

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.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Ferguson's Days Inventory for the three months ended in Apr. 2024 was 72.65.

Inventory Turnover measures how fast the company turns over its inventory within a year. Ferguson's Inventory Turnover for the quarter that ended in Apr. 2024 was 1.26.


Ferguson Inventory-to-Revenue Historical Data

The historical data trend for Ferguson'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.

Ferguson Inventory-to-Revenue Chart

Ferguson Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
Inventory-to-Revenue
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.12 0.13 0.14 0.13 0.14

Ferguson Quarterly Data
Jul18 Jan19 Jul19 Jan20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24
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 0.58 0.51 0.52 0.61 0.55

Competitive Comparison of Ferguson's Inventory-to-Revenue

For the Industrial Distribution subindustry, Ferguson'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.


Ferguson's Inventory-to-Revenue Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Ferguson's Inventory-to-Revenue distribution charts can be found below:

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



Ferguson 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.

Ferguson's Inventory-to-Revenue for the fiscal year that ended in Jul. 2023 is calculated as

Inventory-to-Revenue (A: Jul. 2023 )
=Average Total Inventories / Revenue
=( (Total Inventories (A: Jul. 2022 ) + Total Inventories (A: Jul. 2023 )) / count ) / Revenue (A: Jul. 2023 )
=( (4333 + 3898) / 2 ) / 29734
=4115.5 / 29734
=0.14

Ferguson's Inventory-to-Revenue for the quarter that ended in Apr. 2024 is calculated as

Inventory-to-Revenue (Q: Apr. 2024 )
=Average Total Inventories / Revenue
=( (Total Inventories (Q: Jan. 2024 ) + Total Inventories (Q: Apr. 2024 )) / count ) / Revenue (Q: Apr. 2024 )
=( (3968 + 4115) / 2 ) / 7308
=4041.5 / 7308
=0.55

* 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.


Ferguson  (NYSE:FERG) 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.

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

Days Inventory=Average Total Inventories (Q: Apr. 2024 )/Cost of Goods Sold (Q: Apr. 2024 )*Days in Period
=4041.5/5076*365 / 4
=72.65

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

Ferguson's Inventory Turnover for the quarter that ended in Apr. 2024 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Apr. 2024 ) / Average Total Inventories (Q: Apr. 2024 )
=5076 / 4041.5
=1.26

* 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.


Ferguson Inventory-to-Revenue Related Terms

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


Ferguson (Ferguson) Business Description

Traded in Other Exchanges
Address
1020 Eskdale Road, Winnersh Triangle, Wokingham, Berkshire, GBR, RG41 5TS
Ferguson distributes plumbing and HVAC products primarily to repair, maintenance and improvement, new construction, and civil infrastructure markets. It serves over 1 million customers and sources products from 37,000 suppliers. Ferguson engages customers through approximately 1,700 North American branches, over the phone, online, and in residential showrooms. In fiscal 2023, Ferguson derived 95% of its nearly $30 billion of sales in the U.S. According to Modern Distribution Management, Ferguson is the largest industrial and construction distributor in North America. The firm sold its U.K. business in 2021 and is now solely focused on the North American market.
Executives
Kevin Michael Murphy director, officer: Chief Executive Officer C/O FERGUSON PLC, 1020 ESKDALE ROAD, WINNERSH TRIANGLE, WOKINGHAM, BERKSHIRE X0 RG41 5TS
Samantha J Long officer: Chief Human Resources Officer ONE KELLOGG SQUARE, PO BOX 3599, BATTLE CREEK MI 49016-3599
Ian T. Graham officer: Chief Legal Officer C/O FERGUSON PLC, 1020 ESKDALE ROAD, WINNERSH TRIANGLE, WOKINGHAM, BERKSHIRE X0 RG41 5TS
Jake Schlicher officer: See Remarks C/O FERGUSON PLC, 1020 ESKDALE ROAD, WINNERSH TRIANGLE, WOKINGHAM, BERKSHIRE X0 RG41 5TS
Richard Winckler officer: Chief Accounting Officer C/O FERGUSON PLC, 1020 ESKDALE ROAD, WINNERSH TRIANGLE, WOKINGHAM, BERKSHIRE X0 RG41 5TS
Michael Jacobs officer: Senior VP of Supply Chain 33 COFFEE LANE, WATERBURY VT 05676
Garland Williams officer: Senior Vice President C/O FERGUSON PLC, 1020 ESKDALE ROAD, WINNERSH TRIANGLE, WOKINGHAM, BERKSHIRE X0 RG41 5TS
Thees William T. Jr officer: See Remarks C/O FERGUSON PLC, 1020 ESKDALE ROAD, WINNERSH TRIANGLE, WOKINGHAM, BERKSHIRE X0 RG41 5TS
Geoff Drabble director, other: Chairman C/O FERGUSON PLC, 1020 ESKDALE ROAD, WINNERSH TRIANGLE, WOKINGHAM, BERKSHIRE X0 RG41 5TS
James A. Paisley officer: See Remarks 500 VOLVO PARKWAY, CHESAPEAKE VA 23320
William Brundage director, officer: Chief Financial Officer C/O FERGUSON PLC, 1020 ESKDALE ROAD, WINNERSH TRIANGLE, WOKINGHAM, BERKSHIRE X0 RG41 5TS
Victoria Morrissey officer: Chief Marketing Officer C/O FERGUSON PLC, 1020 ESKDALE ROAD, WINNERSH TRIANGLE, WOKINGHAM, BERKSHIRE X0 RG41 5TS
Brian May director C/O FERGUSON PLC, 1020 ESKDALE ROAD, WINNERSH TRIANGLE, WOKINGHAM, BERKSHIRE X0 RG41 5TS
Alan J. Murray director 11125 GULF SHORE DRIVE, NAPLES FL 34108
James S Metcalf director USG CORP, 125 S FRANKLIN STREET DEPT 188, CHICAGO IL 60606

Ferguson (Ferguson) Headlines

From GuruFocus

Ferguson PLC's Dividend Analysis

By GuruFocus Research 12-13-2023

Why Ferguson PLC's Stock Skyrocketed 10% in a Quarter

By GuruFocus Research 12-05-2023

Ferguson Files Form 8-K

By Business Wire 12-05-2023

Ferguson Files Form 10-Q

By Business Wire 12-07-2023

Ferguson Files Form 8-K

By Business Wire 01-15-2024

Ferguson Share Repurchase Program - Weekly Report

By Business Wire 01-10-2024

Ferguson Share Repurchase Program - Weekly Report

By Business Wire 12-20-2023