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Chemtura (Chemtura) Inventory-to-Revenue : 0.83 (As of Dec. 2016)


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What is Chemtura 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. Chemtura's Average Total Inventories for the quarter that ended in Dec. 2016 was $319 Mil. Chemtura's Revenue for the three months ended in Dec. 2016 was $385 Mil. Chemtura's Inventory-to-Revenue for the quarter that ended in Dec. 2016 was 0.83.

Chemtura's Inventory-to-Revenue for the quarter that ended in Dec. 2016 increased from Sep. 2016 (0.77) to Sep. 2016 (0.83)

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. Chemtura's Days Inventory for the three months ended in Dec. 2016 was 105.09.

Inventory Turnover measures how fast the company turns over its inventory within a year. Chemtura's Inventory Turnover for the quarter that ended in Dec. 2016 was 0.87.


Chemtura Inventory-to-Revenue Historical Data

The historical data trend for Chemtura'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.

Chemtura Inventory-to-Revenue Chart

Chemtura Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Inventory-to-Revenue
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.19 0.17 0.15 0.19 0.19

Chemtura Quarterly Data
Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16
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 0.79 0.78 0.73 0.77 0.83

Competitive Comparison of Chemtura's Inventory-to-Revenue

For the Specialty Chemicals subindustry, Chemtura'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.


Chemtura's Inventory-to-Revenue Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Chemtura's Inventory-to-Revenue distribution charts can be found below:

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



Chemtura 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.

Chemtura's Inventory-to-Revenue for the fiscal year that ended in Dec. 2016 is calculated as

Inventory-to-Revenue (A: Dec. 2016 )
=Average Total Inventories / Revenue
=( (Total Inventories (A: Dec. 2015 ) + Total Inventories (A: Dec. 2016 )) / count ) / Revenue (A: Dec. 2016 )
=( (315 + 310) / 2 ) / 1654
=312.5 / 1654
=0.19

Chemtura's Inventory-to-Revenue for the quarter that ended in Dec. 2016 is calculated as

Inventory-to-Revenue (Q: Dec. 2016 )
=Average Total Inventories / Revenue
=( (Total Inventories (Q: Sep. 2016 ) + Total Inventories (Q: Dec. 2016 )) / count ) / Revenue (Q: Dec. 2016 )
=( (328 + 310) / 2 ) / 385
=319 / 385
=0.83

* 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.


Chemtura  (NYSE:CHMT) 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.

Chemtura's Days Inventory for the three months ended in Dec. 2016 is calculated as:

Days Inventory=Average Total Inventories (Q: Dec. 2016 )/Cost of Goods Sold (Q: Dec. 2016 )*Days in Period
=319/277*365 / 4
=105.09

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

Chemtura's Inventory Turnover for the quarter that ended in Dec. 2016 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Dec. 2016 ) / Average Total Inventories (Q: Dec. 2016 )
=277 / 319
=0.87

* 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.


Chemtura Inventory-to-Revenue Related Terms

Thank you for viewing the detailed overview of Chemtura's Inventory-to-Revenue provided by GuruFocus.com. Please click on the following links to see related term pages.


Chemtura (Chemtura) Business Description

Traded in Other Exchanges
N/A
Address
Chemtura manufactures and sells a variety of chemicals, which include lubricants and bromine. The company organizes itself into two segments based on product type. The industrial performance products segment, which generates most of Chemtura's revenue, sells synthetic lubricants and specialty greases that reduce friction for engines and machines. These products are typically sold to the automotive, aviation, marine, and refrigeration industries. The industrial engineered products segment sells a variety of bromine-based products, which include brominated flame retardants for consumer electronics, oil and gas drilling fluids, and pesticides for the agricultural industry. More revenue comes from North America than any other region.
Executives
Jeffrey D Benjamin director 9 WEST 57TH STREET, 43TH FLOOR, NEW YORK NY 10019
Anna C Catalano director 1313 NORTH MARKET STREET, WILMINGTON DE 19894
John K Wulff director C/O HERCULES INC, 1313 NORTH MARKET STREET, WILMINGTON DE 19894-0001
Stephen C Forsyth officer: EVP & CFO C/O HEXCEL CORP, 281 TRESSER BLVD, STAMFORD CT 06901
Jonathan F Foster director 777 THIRD AVE, 30TH FL, NEW YORK NY 10017
Laurence Michael Orton officer: VP, Corporate Controller C/O CHEMTURA CORPORATION, 199 BENSON ROAD, MIDDLEBURY CT 06749
Craig A Rogerson director, officer: President and CEO 1313 N MARKET ST, WILMINGTON DE 19894
Timothy J Bernlohr director 90 EAST HALSEY RD., PARSIPPANY NJ 07054
James W Crownover director
Kevin V Mahoney officer: SVP and Corporate Controller 199 BENSON ROAD, MIDDLEBURY CT 06749
Roger L Headrick director 199 BENSON RD, MIDDLEBURY CT 06749
Burton M Joyce director
Hale Martin M Sr director C/O GREAT LAKES CHEMICAL, 500 E 96TH STREET SUITE 500, INDIANAPOLIS IN 46240
Trian Fund Management, L.p. other: less than 10% owner 280 PARK AVENUE, 41ST FLOOR, NEW YORK NY 10017
Edward P Garden director 223 SUNSET AVENUE, PALM BEACH FL 33480

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