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Hillshire Brands Co (LSE:HSH) Inventory-to-Revenue : 0.30 (As of Jun. 2014)


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What is Hillshire Brands Co 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. Hillshire Brands Co's Average Total Inventories for the quarter that ended in Jun. 2014 was $315 Mil. Hillshire Brands Co's Revenue for the three months ended in Jun. 2014 was $1,064 Mil. Hillshire Brands Co's Inventory-to-Revenue for the quarter that ended in Jun. 2014 was 0.30.

Hillshire Brands Co's Inventory-to-Revenue for the quarter that ended in Jun. 2014 declined from Mar. 2014 (0.30) to Mar. 2014 (0.30)

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. Hillshire Brands Co's Days Inventory for the three months ended in Jun. 2014 was 37.33.

Inventory Turnover measures how fast the company turns over its inventory within a year. Hillshire Brands Co's Inventory Turnover for the quarter that ended in Jun. 2014 was 2.44.


Hillshire Brands Co Inventory-to-Revenue Historical Data

The historical data trend for Hillshire Brands Co'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.

Hillshire Brands Co Inventory-to-Revenue Chart

Hillshire Brands Co Annual Data
Trend Jun04 Jun05 Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13
Inventory-to-Revenue
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.09 0.08 0.10 0.15 0.08

Hillshire Brands Co Quarterly Data
Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14
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 0.33 0.33 0.28 0.30 0.30

Competitive Comparison of Hillshire Brands Co's Inventory-to-Revenue

For the Packaged Foods subindustry, Hillshire Brands Co'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.


Hillshire Brands Co's Inventory-to-Revenue Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Hillshire Brands Co's Inventory-to-Revenue distribution charts can be found below:

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



Hillshire Brands Co 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.

Hillshire Brands Co's Inventory-to-Revenue for the fiscal year that ended in Jun. 2013 is calculated as

Inventory-to-Revenue (A: Jun. 2013 )
=Average Total Inventories / Revenue
=( (Total Inventories (A: Jun. 2012 ) + Total Inventories (A: Jun. 2013 )) / count ) / Revenue (A: Jun. 2013 )
=( (288 + 313) / 2 ) / 3920
=300.5 / 3920
=0.08

Hillshire Brands Co's Inventory-to-Revenue for the quarter that ended in Jun. 2014 is calculated as

Inventory-to-Revenue (Q: Jun. 2014 )
=Average Total Inventories / Revenue
=( (Total Inventories (Q: Mar. 2014 ) + Total Inventories (Q: Jun. 2014 )) / count ) / Revenue (Q: Jun. 2014 )
=( (300 + 330) / 2 ) / 1064
=315 / 1064
=0.30

* 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.


Hillshire Brands Co  (LSE:HSH) 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.

Hillshire Brands Co's Days Inventory for the three months ended in Jun. 2014 is calculated as:

Days Inventory=Average Total Inventories (Q: Jun. 2014 )/Cost of Goods Sold (Q: Jun. 2014 )*Days in Period
=315/770*365 / 4
=37.33

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

Hillshire Brands Co's Inventory Turnover for the quarter that ended in Jun. 2014 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Jun. 2014 ) / Average Total Inventories (Q: Jun. 2014 )
=770 / 315
=2.44

* 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.


Hillshire Brands Co Inventory-to-Revenue Related Terms

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Hillshire Brands Co (LSE:HSH) Business Description

Traded in Other Exchanges
N/A
Address
Hillshire Brands Co was organized as a corporation in Baltimore, Maryland in 1941 as The C.D. Kenny Company, was renamed Sara Lee Corporation in 1985 and adopted its current name in June 2012. It is a manufacturer and marketer of food products. It provides meat-centric food solutions for the retail and foodservice markets. The Company's Brands' portfolio includes iconic brands such as Jimmy Dean, Ball Park, Hillshire Farm, State Fair, Sara Lee frozen bakery and Chef Pierre pies, as well as artisanal brands Aidells and Gallo Salame. Its operations are organized around two business segments - Retail and Foodservice/Other. Retail sells a variety of packaged meat and frozen bakery products to retail customers in North America. Products include hot dogs and corn dogs, breakfast sausages, breakfast convenience items, including breakfast sandwiches and bowls, dinner sausages, premium deli and luncheon meats and cooked hams, as well as frozen pies, cakes, cheesecakes and other desserts. The primary raw materials for the segment's products include pork and beef, which are purchased almost entirely from third party suppliers and independent farmers, and poultry. The branded meat business is highly competitive, with an emphasis on product quality, innovation and value. New product innovations are a key component to its success. The Retail segment competes with other international, national, regional and local companies in each of the product categories. Foodservice/Other sells a variety of meat and bakery products to foodservice customers in North America. Products include hot dogs and corn dogs, breakfast sausages and sandwiches, dinner sausages, premium deli and luncheon meats, ham, beef and turkey as well as a variety of bakery products, including pastries, muffins, frozen pies, cakes and cheesecakes. The primary raw materials for Foodservice/Other's products include pork, beef and poultry and, to a lesser extent, wheat flour, sugar, corn syrup, cooking oils, butter, fruit and eggs, which are purchased from independent suppliers and farmers. The Foodservice/Other segment competes with other international, national, regional and local companies in each of its product categories. It considers major mass retailers and supermarket chains in the United States to be its most significant customers. The Company is subject to regulations administered by the U.S. Department of Agriculture and the Food and Drug Administration.

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