Thoratec (FRA:TL1) Inventory-to-Revenue : 0.54 (As of Jun. 2015)

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What is Thoratec 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. Thoratec's Average Total Inventories for the quarter that ended in Jun. 2015 was €61.6 Mil. Thoratec's Revenue for the three months ended in Jun. 2015 was €114.7 Mil. Thoratec's Inventory-to-Revenue for the quarter that ended in Jun. 2015 was 0.54.

Thoratec's Inventory-to-Revenue for the quarter that ended in Jun. 2015 increased from Mar. 2015 (0.49) to Mar. 2015 (0.54)

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. Thoratec's Days Inventory for the three months ended in Jun. 2015 was 158.18.

Inventory Turnover measures how fast the company turns over its inventory within a year. Thoratec's Inventory Turnover for the quarter that ended in Jun. 2015 was 0.58.

Thoratec Inventory-to-Revenue Historical Data

The historical data trend for Thoratec'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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Thoratec Inventory-to-Revenue Chart

Thoratec Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Inventory-to-Revenue

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0.16

0.14

0.10

0.11

0.12

Thoratec Quarterly Data
	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15
Inventory-to-Revenue	Get a 7-Day Free Trial															0.53	0.64	0.51	0.49	0.54

Competitive Comparison of Thoratec's Inventory-to-Revenue

For the Medical Devices subindustry, Thoratec'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.

Thoratec's Inventory-to-Revenue Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Thoratec's Inventory-to-Revenue distribution charts can be found below:

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

Thoratec Inventory-to-Revenue Calculation

Thoratec's Inventory-to-Revenue for the fiscal year that ended in Dec. 2014 is calculated as

	Inventory-to-Revenue (A: Dec. 2014 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (A: Dec. 2013 )	+	Total Inventories (A: Dec. 2014 ))	/	count )	/	Revenue (A: Dec. 2014 )
=	( (44.014	+	50.447)	/	2 )	/	387.301
=	47.2305					/	387.301
=	0.12

Thoratec's Inventory-to-Revenue for the quarter that ended in Jun. 2015 is calculated as

	Inventory-to-Revenue (Q: Jun. 2015 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (Q: Mar. 2015 )	+	Total Inventories (Q: Jun. 2015 ))	/	count )	/	Revenue (Q: Jun. 2015 )
=	( (60.109	+	63.135)	/	2 )	/	114.665
=	61.622					/	114.665
=	0.54

Thoratec (FRA:TL1) Inventory-to-Revenue Explanation

An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:

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.

Thoratec's Days Inventory for the three months ended in Jun. 2015 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jun. 2015 )	/	Cost of Goods Sold (Q: Jun. 2015 )	*	Days in Period
	=	61.622	/	35.549	*	365 / 4
	=	158.18

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

Thoratec's Inventory Turnover for the quarter that ended in Jun. 2015 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Jun. 2015 )	/	Average Total Inventories (Q: Jun. 2015 )
	=	35.549	/	61.622
	=	0.58

Thoratec Inventory-to-Revenue Related Terms

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Thoratec (FRA:TL1) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Thoratec Corp (FRA:TL1) » Definitions » Inventory-to-Revenue

Comparable Companies

Traded in Other Exchanges

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Address

Website

http://www.thoratec.com

Thoratec Corporation incorporated in the State of California in 1976 provides mechanical circulatory support with a product portfolio to treat the full range of clinical needs for advanced heart failure patients. It develops, manufactures and markets proprietary medical devices used for circulatory support. Following the sale of ITC in 2010, the Company has one operating segment: Cardiovascular group. This segment is organized and operates to develop and manufacture mechanical circulatory products to support the cardiovascular systems of humans. The Company's VAD products primarily serve patients suffering from late-stage HF. HF is a chronic disease that occurs when degeneration of the heart muscle reduces the pumping power of the heart, causing the heart to become too weak to pump blood at a level sufficient to meet the body's demands. Hospitals that perform open heart surgery and heart transplants are the potential customers for its Thoratec and HeartMate products. The Company estimates that it sells into 293 of these centers. According to the Company's estimates, it is in approximately 149 centers in the United States and 144 centers internationally. Competition from medical device companies and medical device divisions of healthcare companies, pharmaceutical companies and gene- and cell-based therapies is intense and is expected to increase. It therefore continues to expect new competitors both from the pharmacological and the medical device space. Among the medical device competitors are Aachen Innovative Solutions GmbH, AbioMed, Inc., Berlin Heart GmbH, HeartWare International Inc., Jarvik Heart, Inc., Maquet Cardiovascular, LLC (a division of Getinge AB), MicroMed Technology, Inc., Sun Medical Technology Research Corporation, SynCardia Systems, Inc., and Terumo Heart, Inc. All of the Company's proposed products will require regulatory approval prior to commercialization. In particular, medical devices are subject to rigorous pre-clinical testing as a condition of approval by the FDA and by similar authorities in foreign countries.

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