Forest Laboratories (FRA:FQX) Inventory-to-Revenue : 0.48 (As of Mar. 2014)

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What is Forest Laboratories 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. Forest Laboratories's Average Total Inventories for the quarter that ended in Mar. 2014 was €381 Mil. Forest Laboratories's Revenue for the three months ended in Mar. 2014 was €790 Mil. Forest Laboratories's Inventory-to-Revenue for the quarter that ended in Mar. 2014 was 0.48.

Forest Laboratories's Inventory-to-Revenue for the quarter that ended in Mar. 2014 declined from Dec. 2013 (0.53) to Dec. 2013 (0.48)

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. Forest Laboratories's Days Inventory for the three months ended in Mar. 2014 was 193.07.

Inventory Turnover measures how fast the company turns over its inventory within a year. Forest Laboratories's Inventory Turnover for the quarter that ended in Mar. 2014 was 0.47.

Forest Laboratories Inventory-to-Revenue Historical Data

The historical data trend for Forest Laboratories'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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Forest Laboratories Inventory-to-Revenue Chart

Forest Laboratories Annual Data

Trend

Mar05

Mar06

Mar07

Mar08

Mar09

Mar10

Mar11

Mar12

Mar13

Mar14

Inventory-to-Revenue

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0.11

0.08

0.11

0.14

Forest Laboratories Quarterly Data
	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14
Inventory-to-Revenue	Get a 7-Day Free Trial															0.47	0.52	0.56	0.53	0.48

Competitive Comparison of Forest Laboratories's Inventory-to-Revenue

For the Drug Manufacturers - Specialty & Generic subindustry, Forest Laboratories'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.

Forest Laboratories's Inventory-to-Revenue Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Forest Laboratories's Inventory-to-Revenue distribution charts can be found below:

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

Forest Laboratories Inventory-to-Revenue Calculation

Forest Laboratories's Inventory-to-Revenue for the fiscal year that ended in Mar. 2014 is calculated as

	Inventory-to-Revenue (A: Mar. 2014 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (A: Mar. 2013 )	+	Total Inventories (A: Mar. 2014 ))	/	count )	/	Revenue (A: Mar. 2014 )
=	( (304.092	+	442.956)	/	2 )	/	2636.708
=	373.524					/	2636.708
=	0.14

Forest Laboratories's Inventory-to-Revenue for the quarter that ended in Mar. 2014 is calculated as

	Inventory-to-Revenue (Q: Mar. 2014 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (Q: Dec. 2013 )	+	Total Inventories (Q: Mar. 2014 ))	/	count )	/	Revenue (Q: Mar. 2014 )
=	( (319.741	+	442.956)	/	2 )	/	789.717
=	381.3485					/	789.717
=	0.48

Forest Laboratories (FRA:FQX) 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:

More Related Terms:

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Forest Laboratories's Days Inventory for the three months ended in Mar. 2014 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2014 )	/	Cost of Goods Sold (Q: Mar. 2014 )	*	Days in Period
	=	381.3485	/	180.235	*	365 / 4
	=	193.07

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

Forest Laboratories's Inventory Turnover for the quarter that ended in Mar. 2014 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Mar. 2014 )	/	Average Total Inventories (Q: Mar. 2014 )
	=	180.235	/	381.3485
	=	0.47

Forest Laboratories Inventory-to-Revenue Related Terms

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Forest Laboratories (FRA:FQX) Business Description

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Website

http://www.frx.com

Forest Laboratories, Inc. is a Delaware corporation organized in 1956. The Company develops, manufactures and sells branded forms of ethical drug products most of which require a physician's prescription. The Company's most important United States products are marketed directly, or 'detailed,' to physicians by its salesforces. It emphasizes detailing to physicians of those branded ethical drugs which have the most potential for growth and benefit to patients. The Company also develops and introduces new products, including products developed in collaboration with licensing partners. The Company's products include those developed by it and those acquired from other pharmaceutical companies and integrated into its marketing and distribution systems. It actively promotes in the United States those branded products which have the most potential for growth and patient benefit, and which enable its salesforces to concentrate on groups of physicians who are high prescribers of its products. Such products include: Lexapro, its SSRI for the treatment of major depression in adults and adolescents and GAD in adults; Namenda, its NMDA antagonist for the treatment of moderate and severe Alzheimer's disease; Bystolic, its beta-blocker for the treatment of hypertension; and Savella, its newest product, an SNRI for the management of fibromyalgia. The Company's United Kingdom and Ireland subsidiaries sell both ethical products and over-the-counter preparations. Their most important products include Sudocrem, a topical preparation for the treatment of diaper rash; Colomycin, an antibiotic used in the treatment of cystic fibrosis; Infacol, used to treat infant colic; and Exorex, used in the treatment of eczema and psoriasis. The pharmaceutical industry is subject to comprehensive government regulation which substantially increases the difficulty and cost incurred in obtaining the approval to market newly proposed drug products and maintaining the approval to market existing drugs.

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