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. RPM International's Average Total Inventories for the quarter that ended in Feb. 2024 was $1,092 Mil. RPM International's Revenue for the
three
months ended in Feb. 2024 was $1,523 Mil.
RPM International's Inventory-to-Revenue for the quarter that ended in Feb. 2024 was 0.72.
RPM International's Inventory-to-Revenue for the quarter that ended in Feb. 2024
increased
from Nov. 2023 (0.62) to Nov. 2023 (0.72)
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.
RPM International's Days Inventory for the
three
months ended in Feb. 2024 was 108.78.
Inventory Turnover measures how fast the company turns over its inventory within a year.
RPM International's Inventory Turnover for the quarter that ended in Feb. 2024 was 0.84.
RPM International Inventory-to-Revenue Historical Data
The historical data trend for RPM International'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 RPM International's Inventory-to-Revenue
For the Specialty Chemicals subindustry, RPM International'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.
RPM International's Inventory-to-Revenue Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, RPM International's Inventory-to-Revenue distribution charts can be found below:
* The bar in red indicates where RPM International's Inventory-to-Revenue falls into.
RPM International 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.
RPM International's Inventory-to-Revenue for the fiscal year that ended in May. 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.
RPM International (NYSE:RPM) 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.
RPM International's Days Inventory for the
three
months ended in Feb. 2024 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.
RPM International Inventory-to-Revenue Related Terms
Thank you for viewing the detailed overview of RPM International's Inventory-to-Revenue provided by GuruFocus.com. Please click on the following links to see related term pages.
RPM International (RPM International) Business Description
RPM International Inc manufactures and sells a variety of paints, coatings, and adhesives. The firm organizes itself into four segments based on product type. The construction products group sells coatings, roofing, insulation, and other products to distributers, contractors, and end consumers globally. The performance coatings group produces coatings that are used in construction and industrial applications like floorings and corrosion control. The consumer group sells paint, finishes, and similar products to individual consumers through hardware and craft stores. The specialty products group sells a variety of products ranging from niche applications of the other groups, to marine finishes, to edible food colorings. The majority of revenue comes from North America.
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