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Globecomm Systems, Inc. (NAS:GCOM)
Inventory to Revenue
0.33 (As of Sep. 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. Globecomm Systems, Inc.'s average inventory for the quarter that ended in Sep. 2013 was \$19.0 Mil. Globecomm Systems, Inc.'s revenue for the three months ended in Sep. 2013 was \$57.3 Mil. Globecomm Systems, Inc.'s inventory to revenue ratio for the quarter that ended in Sep. 2013 was 0.33.

Globecomm Systems, Inc.'s inventory to revenue ratio for the quarter that ended in Sep. 2013 increased from Jun. 2013 (0.31) to Jun. 2013 (0.33)

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. Globecomm Systems, Inc.'s days inventory for the three months ended in Sep. 2013 was 41.00.

Inventory can be measured by Days Sales of Inventory (DSI). Globecomm Systems, Inc.'s days sales of inventory (DSI) for the three months ended in Sep. 2013 was 30.22.

Inventory turnover measures how fast the company turns over its inventory within a year. Globecomm Systems, Inc.'s inventory turnover for the quarter that ended in Sep. 2013 was 2.23.

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.

Globecomm Systems, Inc.'s Inventory to Revenue for the fiscal year that ended in Jun. 2013 is calculated as

 Inventory to Revenue (A: Jun. 2013 ) = Average Inventory / Revenue = ( (Inventory (A: Jun. 2012 ) + Inventory (A: Jun. 2013 )) / 2 ) / Revenue (A: Jun. 2013 ) = ( (30.664 + 17.076) / 2 ) / 319.614 = 23.87 / 319.614 = 0.07

Globecomm Systems, Inc.'s Inventory to Revenue for the quarter that ended in Sep. 2013 is calculated as

 Inventory to Revenue (Q: Sep. 2013 ) = Average Inventory / Revenue = ( (Inventory (Q: Jun. 2013 ) + Inventory (Q: Sep. 2013 )) / 2 ) / Revenue (Q: Sep. 2013 ) = ( (17.076 + 20.858) / 2 ) / 57.262 = 18.967 / 57.262 = 0.33

* 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.

Globecomm Systems, Inc.'s Days Inventory for the three months ended in Sep. 2013 is calculated as:

 Days Inventory = Average Inventory (Q: Sep. 2013 ) / Cost of Goods Sold (Q: Sep. 2013 ) * Days in Period = 18.967 / 42.216 * 365 / 4 = 41.00

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

Globecomm Systems, Inc.'s Days Sales of Inventory for the three months ended in Sep. 2013 is

 Days Sales of Inventory (DSI) = Average Inventory (Q: Sep. 2013 ) / Revenue (Q: Sep. 2013 ) * Days in Period = 18.967 / 57.262 * 365 / 4 = 30.22

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

Globecomm Systems, Inc.'s Inventory Turnover for the quarter that ended in Sep. 2013 is calculated as

 Inventory Turnover = Cost of Goods Sold (Q: Sep. 2013 ) / Average Inventory (Q: Sep. 2013 ) = 42.216 / 18.967 = 2.23

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

Related Terms

Historical Data

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

Globecomm Systems, Inc. Annual Data

 Jun04 Jun05 Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 inventory2rev 0.09 0.08 0.10 0.10 0.08 0.10 0.11 0.14 0.10 0.08

Globecomm Systems, Inc. Quarterly Data

 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 inventory2rev 0.51 0.67 0.54 0.43 0.37 0.38 0.43 0.44 0.31 0.33
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