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. Rite Aid's Average Total Inventories for the quarter that ended in Aug. 2023 was €1,811 Mil. Rite Aid's Revenue for the
three
months ended in Aug. 2023 was €5,177 Mil.
Rite Aid's Inventory-to-Revenue for the quarter that ended in Aug. 2023 was 0.35.
Rite Aid's Inventory-to-Revenue for the quarter that ended in Aug. 2023
increased
from May. 2023 (0.34) to May. 2023 (0.35)
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.
Days Inventory indicates the number of days of goods in sales that a company has in the inventory.
Rite Aid's Days Inventory for the
three
months ended in Aug. 2023 was 39.61.
Inventory Turnover measures how fast the company turns over its inventory within a year.
Rite Aid's Inventory Turnover for the quarter that ended in Aug. 2023 was 2.30.
Rite Aid Inventory-to-Revenue Historical Data
The historical data trend for Rite Aid'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.
Competitive Comparison of Rite Aid's Inventory-to-Revenue
For the Pharmaceutical Retailers subindustry, Rite Aid'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.
Rite Aid's Inventory-to-Revenue Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Rite Aid's Inventory-to-Revenue distribution charts can be found below:
* The bar in red indicates where Rite Aid's Inventory-to-Revenue falls into.
Rite Aid 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.
Rite Aid's Inventory-to-Revenue for the fiscal year that ended in Feb. 2023 is calculated as
* 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.
Rite Aid (FRA:RTA1) 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.
Rite Aid's Days Inventory for the
three
months ended in Aug. 2023 is calculated as:
* 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.
Rite Aid Inventory-to-Revenue Related Terms
Thank you for viewing the detailed overview of Rite Aid's Inventory-to-Revenue provided by GuruFocus.com. Please click on the following links to see related term pages.
Rite Aid Corp is a large retail drugstore chain in the United States. The company reports via two segments: retail pharmacy and pharmacy services. The retail pharmacy segment generates revenue primarily through the sale of prescription drugs, along with an assortment of merchandise that includes over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, food and beverages, greeting cards, seasonal merchandise, and numerous other everyday consumables. The pharmacy-services segment relates to EnvisionRx, a fully owned subsidiary that operates as a pharmacy benefit management provider offering a broad range of pharmaceutical services.
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