Switch to:
GDF Suez (OTCPK:GDFZY)
Inventory to Revenue
0.12 (As of Jun. 2014)

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. GDF Suez's average inventory for the quarter that ended in Jun. 2014 was \$6,654 Mil. GDF Suez's revenue for the six months ended in Jun. 2014 was \$53,553 Mil. GDF Suez's inventory to revenue ratio for the quarter that ended in Jun. 2014 was 0.12.

GDF Suez's inventory to revenue ratio for the quarter that ended in Jun. 2014 increased from Dec. 2013 (0.12) to Dec. 2013 (0.12)

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. GDF Suez's days inventory for the six months ended in Jun. 2014 was 36.93.

Inventory can be measured by Days Sales of Inventory (DSI). GDF Suez's days sales of inventory (DSI) for the six months ended in Jun. 2014 was 22.68.

Inventory turnover measures how fast the company turns over its inventory within a year. GDF Suez's inventory turnover for the quarter that ended in Jun. 2014 was 4.94.

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.

GDF Suez's Inventory to Revenue for the fiscal year that ended in Dec. 2013 is calculated as

 Inventory to Revenue (A: Dec. 2013 ) = Average Inventory / Revenue = ( (Inventory (A: Dec. 2012 ) + Inventory (A: Dec. 2013 )) / 2 ) / Revenue (A: Dec. 2013 ) = ( (7116.79790026 + 6954.73251029) / 2 ) / 122496.570645 = 7035.76520528 / 122496.570645 = 0.06

GDF Suez's Inventory to Revenue for the quarter that ended in Jun. 2014 is calculated as

 Inventory to Revenue (Q: Jun. 2014 ) = Average Inventory / Revenue = ( (Inventory (Q: Dec. 2013 ) + Inventory (Q: Jun. 2014 )) / 2 ) / Revenue (Q: Jun. 2014 ) = ( (6954.73251029 + 6353.26086957) / 2 ) / 53552.9891304 = 6653.99668993 / 53552.9891304 = 0.12

* 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.

GDF Suez's Days Inventory for the six months ended in Jun. 2014 is calculated as:

 Days Inventory = Average Inventory (Q: Jun. 2014 ) / Cost of Goods Sold (Q: Jun. 2014 ) * Days in Period = 6653.99668993 / 32880.4347826 * 365 / 2 = 36.93

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

GDF Suez's Days Sales of Inventory for the six months ended in Jun. 2014 is

 Days Sales of Inventory (DSI) = Average Inventory (Q: Jun. 2014 ) / Revenue (Q: Jun. 2014 ) * Days in Period = 6653.99668993 / 53552.9891304 * 365 / 2 = 22.68

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

GDF Suez's Inventory Turnover for the quarter that ended in Jun. 2014 is calculated as

 Inventory Turnover = Cost of Goods Sold (Q: Jun. 2014 ) / Average Inventory (Q: Jun. 2014 ) = 32880.4347826 / 6653.99668993 = 4.94

* 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.

GDF Suez Annual Data

 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 inventory2rev 0.05 0.05 0.03 0.03 0.04 0.05 0.05 0.05 0.06 0.06

GDF Suez Semi-Annual Data

 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 inventory2rev 0.05 0.10 0.09 0.10 0.12 0.11 0.11 0.10 0.12 0.12
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to \$400 per referral. ( Learn More)