Fiat Industrial SpA (MIL:FI) Inventory-to-Revenue : 0.84 (As of Jun. 2013)

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What is Fiat Industrial SpA 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. Fiat Industrial SpA's Average Total Inventories for the quarter that ended in Jun. 2013 was €5,741 Mil. Fiat Industrial SpA's Revenue for the three months ended in Jun. 2013 was €6,825 Mil. Fiat Industrial SpA's Inventory-to-Revenue for the quarter that ended in Jun. 2013 was 0.84.

Fiat Industrial SpA's Inventory-to-Revenue for the quarter that ended in Jun. 2013 declined from Mar. 2013 (0.91) to Mar. 2013 (0.84)

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. Fiat Industrial SpA's Days Inventory for the three months ended in Jun. 2013 was 96.10.

Inventory Turnover measures how fast the company turns over its inventory within a year. Fiat Industrial SpA's Inventory Turnover for the quarter that ended in Jun. 2013 was 0.95.

Fiat Industrial SpA Inventory-to-Revenue Historical Data

The historical data trend for Fiat Industrial SpA'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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Fiat Industrial SpA Inventory-to-Revenue Chart

Fiat Industrial SpA Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Inventory-to-Revenue

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0.18

0.20

0.18

0.19

Fiat Industrial SpA Quarterly Data
	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13
Inventory-to-Revenue	Get a 7-Day Free Trial										0.84	0.89	0.74	0.91	0.84

Competitive Comparison of Fiat Industrial SpA's Inventory-to-Revenue

For the Farm & Heavy Construction Machinery subindustry, Fiat Industrial SpA'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.

Fiat Industrial SpA's Inventory-to-Revenue Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Fiat Industrial SpA's Inventory-to-Revenue distribution charts can be found below:

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

Fiat Industrial SpA Inventory-to-Revenue Calculation

Fiat Industrial SpA's Inventory-to-Revenue for the fiscal year that ended in Dec. 2012 is calculated as

	Inventory-to-Revenue (A: Dec. 2012 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (A: Dec. 2011 )	+	Total Inventories (A: Dec. 2012 ))	/	count )	/	Revenue (A: Dec. 2012 )
=	( (4865	+	4843)	/	2 )	/	25785
=	4854					/	25785
=	0.19

Fiat Industrial SpA's Inventory-to-Revenue for the quarter that ended in Jun. 2013 is calculated as

	Inventory-to-Revenue (Q: Jun. 2013 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (Q: Mar. 2013 )	+	Total Inventories (Q: Jun. 2013 ))	/	count )	/	Revenue (Q: Jun. 2013 )
=	( (5660	+	5821)	/	2 )	/	6825
=	5740.5					/	6825
=	0.84

Fiat Industrial SpA (MIL:FI) 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.

Fiat Industrial SpA's Days Inventory for the three months ended in Jun. 2013 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jun. 2013 )	/	Cost of Goods Sold (Q: Jun. 2013 )	*	Days in Period
	=	5740.5	/	5451	*	365 / 4
	=	96.10

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

Fiat Industrial SpA's Inventory Turnover for the quarter that ended in Jun. 2013 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Jun. 2013 )	/	Average Total Inventories (Q: Jun. 2013 )
	=	5451	/	5740.5
	=	0.95

Fiat Industrial SpA Inventory-to-Revenue Related Terms

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Fiat Industrial SpA (MIL:FI) Business Description

Industry

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Traded in Other Exchanges

N/A

Address

Website

http://www.fiatindustrial.com

Fiat Industrial SpA operates in the capital goods sector. Each of the Group's businesses is a major international player in its respective industry sector: Iveco, CNH-Case New Holland and FPT Industrial. These three sectors design, produce and sell trucks, commercial vehicles, buses, special vehicles (Iveco), tractors, and agricultural and construction equipment (CNH), in addition to engines and transmissions for those vehicles and engines for marine applications (FPT Industrial). Agricultural equipment is sold under the New Holland Agriculture and Case IH and, in the premium segment in Europe, Steyr brands. Construction equipment is sold under the New Holland Construction and Case Construction brands, as well as the Kobelco brand in North America. Iveco designs, manufactures and sells a wide range of light (2.8-6 tons GVW), medium (6-16 tons GVW) and heavy (above 16 tons GVW) commercial vehicles for on-road and off-road use. In addition to its main product offer, the Company also offers after-sales and financing services, in addition to services related to used-vehicles. FPT Industrial is specialized in the design, production and sale of propulsion and transmission systems for on- and off-road trucks and commercial vehicles, as well as engines for marine application and power generation.