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Clearfield Inc (NAS:CLFD)
Inventory-to-Revenue
0.47 (As of Dec. 2016)

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. Clearfield Inc's average inventory for the quarter that ended in Dec. 2016 was \$8.54 Mil. Clearfield Inc's revenue for the three months ended in Dec. 2016 was \$18.27 Mil. Clearfield Inc's inventory to revenue ratio for the quarter that ended in Dec. 2016 was 0.47.

Clearfield Inc's inventory to revenue ratio for the quarter that ended in Dec. 2016 increased from Sep. 2016 (0.39) to Sep. 2016 (0.47)

An increase in inventory to revenue ratio 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 ratio 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. Clearfield Inc's days inventory for the three months ended in Dec. 2016 was 70.51.

Inventory can be measured by Days Sales of Inventory (DSI). Clearfield Inc's days sales of inventory (DSI) for the three months ended in Dec. 2016 was 42.68.

Inventory turnover measures how fast the company turns over its inventory within a year. Clearfield Inc's inventory turnover for the quarter that ended in Dec. 2016 was 1.29.

Definition

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.

Clearfield Inc's Inventory to Revenue for the fiscal year that ended in Sep. 2016 is calculated as

 Inventory to Revenue (A: Sep. 2016 ) = Average Inventory / Revenue = ( (Inventory (A: Sep. 2015 ) + Inventory (A: Sep. 2016 )) / 2 ) / Revenue (A: Sep. 2016 ) = ( (7.183 + 8.373) / 2 ) / 75.288 = 7.778 / 75.288 = 0.10

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

 Inventory to Revenue (Q: Dec. 2016 ) = Average Inventory / Revenue = ( (Inventory (Q: Sep. 2016 ) + Inventory (Q: Dec. 2016 )) / 2 ) / Revenue (Q: Dec. 2016 ) = ( (8.373 + 8.715) / 2 ) / 18.266 = 8.544 / 18.266 = 0.47

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Explanation

An increase in inventory to revenue ratio 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 ratio may signal an oncoming cash flow problem.

Likewise, a decrease in the inventory to revenue ratio 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 ratio, 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.

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

 Days Inventory = Average Inventory (Q: Dec. 2016 ) / Cost of Goods Sold (Q: Dec. 2016 ) * Days in Period = 8.544 / 11.057 * 365 / 4 = 70.51

2. Inventory can be measured by Days Sales of Inventory (DSI).

Clearfield Inc's Days Sales of Inventory for the three months ended in Dec. 2016 is

 Days Sales of Inventory (DSI) = Average Inventory (Q: Dec. 2016 ) / Revenue (Q: Dec. 2016 ) * Days in Period = 8.544 / 18.266 * 365 / 4 = 42.68

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

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

 Inventory Turnover = Cost of Goods Sold (Q: Dec. 2016 ) / Average Inventory (Q: Dec. 2016 ) = 11.057 / 8.544 = 1.29

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Clearfield Inc Annual Data

 Mar07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 inventory2rev 0.09 0.07 0.07 0.06 0.06 0.08 0.08 0.10 0.10 0.10

Clearfield Inc Quarterly Data

 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 inventory2rev 0.37 0.38 0.43 0.33 0.44 0.45 0.44 0.38 0.39 0.47
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