Beacon Roofing Supply (Beacon Roofing Supply) Inventory-to-Revenue : 0.55 (As of Dec. 2023)

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What is Beacon Roofing Supply 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. Beacon Roofing Supply's Average Total Inventories for the quarter that ended in Dec. 2023 was $1,268 Mil. Beacon Roofing Supply's Revenue for the three months ended in Dec. 2023 was $2,300 Mil. Beacon Roofing Supply's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.55.

Beacon Roofing Supply's Inventory-to-Revenue for the quarter that ended in Dec. 2023 increased from Sep. 2023 (0.52) to Sep. 2023 (0.55)

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. Beacon Roofing Supply's Days Inventory for the three months ended in Dec. 2023 was 67.76.

Inventory Turnover measures how fast the company turns over its inventory within a year. Beacon Roofing Supply's Inventory Turnover for the quarter that ended in Dec. 2023 was 1.35.

Beacon Roofing Supply Inventory-to-Revenue Historical Data

The historical data trend for Beacon Roofing Supply'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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Beacon Roofing Supply Inventory-to-Revenue Chart

Beacon Roofing Supply Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Dec22

Dec23

Inventory-to-Revenue

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0.16

0.15

0.14

Beacon Roofing Supply Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory-to-Revenue	Get a 7-Day Free Trial															0.69	0.76	0.53	0.52	0.55

Competitive Comparison of Beacon Roofing Supply's Inventory-to-Revenue

For the Industrial Distribution subindustry, Beacon Roofing Supply'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.

Beacon Roofing Supply's Inventory-to-Revenue Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Beacon Roofing Supply's Inventory-to-Revenue distribution charts can be found below:

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

Beacon Roofing Supply Inventory-to-Revenue Calculation

Beacon Roofing Supply's Inventory-to-Revenue for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory-to-Revenue (A: Dec. 2023 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )	/	Revenue (A: Dec. 2023 )
=	( (1322.9	+	1227.9)	/	2 )	/	9119.8
=	1275.4					/	9119.8
=	0.14

Beacon Roofing Supply's Inventory-to-Revenue for the quarter that ended in Dec. 2023 is calculated as

	Inventory-to-Revenue (Q: Dec. 2023 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )	/	Revenue (Q: Dec. 2023 )
=	( (1307.9	+	1227.9)	/	2 )	/	2299.5
=	1267.9					/	2299.5
=	0.55

Beacon Roofing Supply (NAS:BECN) 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.

Beacon Roofing Supply's Days Inventory for the three months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	1267.9	/	1707.5	*	365 / 4
	=	67.76

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

Beacon Roofing Supply's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Dec. 2023 )	/	Average Total Inventories (Q: Dec. 2023 )
	=	1707.5	/	1267.9
	=	1.35

Beacon Roofing Supply Inventory-to-Revenue Related Terms

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Beacon Roofing Supply (Beacon Roofing Supply) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Distribution » Beacon Roofing Supply Inc (NAS:BECN) » Definitions » Inventory-to-Revenue

Comparable Companies

Traded in Other Exchanges

OWY:Germany

Address

505 Huntmar Park Drive, Suite 300, Herndon, VA, USA, 20170

Website

https://www.becn.com

Beacon Roofing Supply Inc manufactures and sells roofing and building materials throughout the United States and Canada. Beacon's key customers consist of contractors, home builders, lumberyards, retailers, wholesale distributors, and building materials suppliers. The company's product portfolio includes both residential and non-residential roofing materials, siding, windows, and waterproofing systems. The majority of revenue is generated from residential and non-residential roofing products. The vast majority of Beacon's revenue comes from the United States.

Executives

Jason L Taylor	officer: President, West Division	505 HUNTMAR PARK DR, SUITE 300, HERNDON VA 20170
James J Gosa	officer: President, North/Canada Div.	505 HUNTMAR PARK DR, SUITE 300, HERNDON VA 20170
Cd&r Investment Associates Ix, Ltd.	10 percent owner	MAPLES CORPORATE SERVICES LIMITED, UGLAND HOUSE, GRAND CAYMAN E9 KY101194
Best Clement Munroe Iii	officer: President, South Division	505 HUNTMAR PARK DR, SUITE 300, HERNDON VA 20170
Julian Francis	director, officer: President & CEO	ONE OWENS CORNING PARKWAY, TOLEDO OH 43659
Christopher Carl Nelson	officer: EVP, CIO	505 HUNTMAR PARK DR, SUITE 300, HERNDON VA 20170
Robert M Mclaughlin	director	C/O AIRGAS, INC., 259 NORTH RADNOR-CHESTER RD, RADNOR PA 19087
Martin S. Harrell	officer: President, Waterproofing	3401 PHILIPS HWY, JACKSONVILLE FL 32207
Christine Stroh Reddy	officer: EVP, General Counsel	505 HUNTMAR PARK DRIVE, SUITE 300, HERNDON VA 20170
Stuart A Randle	director	585 WEST 500 SOUTH, BOUNTIFUL UT 84010
Racquel Harris Mason	director	C/O ELANCO ANIMAL HEALTH INCORPORATED, 2500 INNOVATION WAY, GREENFIELD IN 46140
Hart Melanie Housey	director	POOL CORPORATION, 109 NORTHPARK BLVD, COVINGTON LA 70433
Frank A Lonegro	officer: EVP & Chief Financial Officer	500 WATER STREET, JACKSONVILLE FL 32202
Jonathan Stuart Bennett	officer: EVP & CCO	505 HUNTMAR PARK DR, SUITE 300, HERNDON VA 20170
Sean M. Mcdevitt	officer: EVP & CHRO	505 HUNTMAR PARK DR, SUITE 300, HERNDON VA 20170