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Energy Transfer Partners, L.P. (NYSE:ETP)
Inventory to Revenue
0.15 (As of Dec. 2013)

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. Energy Transfer Partners, L.P.'s inventory for the quarter that ended in Dec. 2013 was $1,765 Mil. Energy Transfer Partners, L.P.'s revenue for the three months ended in Dec. 2013 was $12,032 Mil. Energy Transfer Partners, L.P.'s inventory to revenue ratio for the quarter that ended in Dec. 2013 was 0.15.

Energy Transfer Partners, L.P.'s inventory to revenue ratio for the quarter that ended in Dec. 2013 increased from Sep. 2013 (0.14) to Sep. 2013 (0.15)

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. Energy Transfer Partners, L.P.'s days inventory for the three months ended in Dec. 2013 was 14.39.

Inventory can be measured by Days Sales of Inventory (DSI). Energy Transfer Partners, L.P.'s days sales of inventory (DSI) for the three months ended in Dec. 2013 was 13.35.

Inventory turnover measures how fast the company turns over its inventory within a year. Energy Transfer Partners, L.P.'s inventory turnover for the quarter that ended in Dec. 2013 was 6.33.


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.

Energy Transfer Partners, L.P.'s Inventory to Revenue for the fiscal year that ended in Dec. 2013 is calculated as

Inventory to Revenue (A: Dec. 2013 )=Inventory (A: Dec. 2013 ) / Revenue (A: Dec. 2013 )
=1765 / 46339
=0.04

Energy Transfer Partners, L.P.'s Inventory to Revenue for the quarter that ended in Dec. 2013 is calculated as

Inventory to Revenue (Q: Dec. 2013 )=Inventory (Q: Dec. 2013 ) / Revenue (Q: Dec. 2013 )
=1765 / 12032
=0.15

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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.

Energy Transfer Partners, L.P.'s Days Inventory for the three months ended in Dec. 2013 is calculated as:

Days Inventory=Inventory (Q: Dec. 2013 )/Cost of Goods Sold (Q: Dec. 2013 )*Days in Period
=1765/11165*91
=14.39

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

Energy Transfer Partners, L.P.'s Days Sales of Inventory for the three months ended in Dec. 2013 is

Days Sales of Inventory (DSI)=Inventory (Q: Dec. 2013 )/Revenue (Q: Dec. 2013 )*Days in Period
=1765/12032*91
=13.35

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

Energy Transfer Partners, L.P.'s Inventory Turnover for the quarter that ended in Dec. 2013 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Dec. 2013 ) / Average Inventory (Q: Dec. 2013 )
=11165 / 1765
=6.33

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Related Terms

Inventory, Revenue, Days Inventory, Cost of Goods Sold, Inventory Turnover


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Energy Transfer Partners, L.P. Annual Data

Aug04Aug05Aug06Aug07Dec08Dec09Dec10Dec11Dec12Dec13
inventory2rev 0.020.050.050.030.030.070.060.050.100.04

Energy Transfer Partners, L.P. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
inventory2rev 0.180.170.150.140.130.140.150.140.140.15
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