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Liberty Interactive Corp (NAS:LINTA)
Inventory to Revenue
0.42 (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. Liberty Interactive Corp's inventory for the quarter that ended in Jun. 2014 was \$1,181 Mil. Liberty Interactive Corp's revenue for the three months ended in Jun. 2014 was \$2,818 Mil. Liberty Interactive Corp's inventory to revenue ratio for the quarter that ended in Jun. 2014 was 0.42.

Liberty Interactive Corp's inventory to revenue ratio for the quarter that ended in Jun. 2014 declined from Mar. 2014 (0.45) to Mar. 2014 (0.42)

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.

Days inventory indicates the number of days of goods in sales that a company has in the inventory. Liberty Interactive Corp's days inventory for the three months ended in Jun. 2014 was 68.54.

Inventory can be measured by Days Sales of Inventory (DSI). Liberty Interactive Corp's days sales of inventory (DSI) for the three months ended in Jun. 2014 was 38.14.

Inventory turnover measures how fast the company turns over its inventory within a year. Liberty Interactive Corp's inventory turnover for the quarter that ended in Jun. 2014 was 1.33.

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.

Liberty Interactive Corp'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 ) = 1135 / 11252 = 0.10

Liberty Interactive Corp's Inventory to Revenue for the quarter that ended in Jun. 2014 is calculated as

 Inventory to Revenue (Q: Jun. 2014 ) = Inventory (Q: Jun. 2014 ) / Revenue (Q: Jun. 2014 ) = 1181 / 2818 = 0.42

* 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.

Liberty Interactive Corp's Days Inventory for the three months ended in Jun. 2014 is calculated as:

 Days Inventory = Inventory (Q: Jun. 2014 ) / Cost of Goods Sold (Q: Jun. 2014 ) * Days in Period = 1181 / 1568 * 91 = 68.54

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

Liberty Interactive Corp's Days Sales of Inventory for the three months ended in Jun. 2014 is

 Days Sales of Inventory (DSI) = Inventory (Q: Jun. 2014 ) / Revenue (Q: Jun. 2014 ) * Days in Period = 1181 / 2818 * 91 = 38.14

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

Liberty Interactive Corp'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 ) = 1568 / 1181 = 1.33

* 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.

Liberty Interactive Corp Annual Data

 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 inventory2rev 0.00 0.11 0.11 0.13 0.13 0.12 0.12 0.11 0.11 0.10

Liberty Interactive Corp Quarterly Data

 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 inventory2rev 0.49 0.46 0.57 0.35 0.42 0.43 0.53 0.33 0.45 0.42
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