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Inventory to Revenue
0.00 (As of . 20)

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. 's inventory for the quarter that ended in . 20 was \$0.00 Mil. 's revenue for the six months ended in . 20 was \$0.00 Mil.

's inventory to revenue ratio for the quarter that ended in . 20 stayed the same from . 20 (0.00) to . 20 (0.00)

Days inventory indicates the number of days of goods in sales that a company has in the inventory.

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

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

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.

's Inventory to Revenue for the fiscal year that ended in . 20 is calculated as

 Inventory to Revenue (A: . 20 ) = Inventory (A: . 20 ) / Revenue (A: . 20 ) = / = N/A

's Inventory to Revenue for the quarter that ended in . 20 is calculated as

 Inventory to Revenue (Q: . 20 ) = Inventory (Q: . 20 ) / Revenue (Q: . 20 ) = / =

* 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.

's Days Inventory for the six months ended in . 20 is calculated as:

 Days Inventory = Inventory (Q: . 20 ) / Cost of Goods Sold (Q: . 20 ) * Days in Period = / * 91 =

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

's Days Sales of Inventory for the six months ended in . 20 is

 Days Sales of Inventory (DSI) = Inventory (Q: . 20 ) / Revenue (Q: . 20 ) * Days in Period = / * 91 =

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

's Inventory Turnover for the quarter that ended in . 20 is calculated as

 Inventory Turnover = Cost of Goods Sold (Q: . 20 ) / Average Inventory (Q: . 20 ) = / =

* 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.

Annual Data

 inventory2rev 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Semi-Annual Data

 inventory2rev 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
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