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PSS World Medical, Inc. (NAS:PSSI)
Inventory to Revenue
0.39 (As of Sep. 2012)

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. PSS World Medical, Inc.'s inventory for the quarter that ended in Sep. 2012 was $166 Mil. PSS World Medical, Inc.'s revenue for the six months ended in Sep. 2012 was $421 Mil. PSS World Medical, Inc.'s inventory to revenue ratio for the quarter that ended in Sep. 2012 was 0.39.

PSS World Medical, Inc.'s inventory to revenue ratio for the quarter that ended in Sep. 2012 declined from Jun. 2012 (0.43) to Jun. 2012 (0.39)

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. PSS World Medical, Inc.'s days inventory for the six months ended in Sep. 2012 was 54.10.

Inventory can be measured by Days Sales of Inventory (DSI). PSS World Medical, Inc.'s days sales of inventory (DSI) for the six months ended in Sep. 2012 was 35.82.

Inventory turnover measures how fast the company turns over its inventory within a year. PSS World Medical, Inc.'s inventory turnover for the quarter that ended in Sep. 2012 was 1.68.


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.

PSS World Medical, Inc.'s Inventory to Revenue for the fiscal year that ended in Mar. 2012 is calculated as

Inventory to Revenue (A: Mar. 2012 )=Inventory (A: Mar. 2012 ) / Revenue (A: Mar. 2012 )
=213.586 / 2102.002
=0.10

PSS World Medical, Inc.'s Inventory to Revenue for the quarter that ended in Sep. 2012 is calculated as

Inventory to Revenue (Q: Sep. 2012 )=Inventory (Q: Sep. 2012 ) / Revenue (Q: Sep. 2012 )
=165.629 / 420.798
=0.39

* 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.

PSS World Medical, Inc.'s Days Inventory for the six months ended in Sep. 2012 is calculated as:

Days Inventory=Inventory (Q: Sep. 2012 )/Cost of Goods Sold (Q: Sep. 2012 )*Days in Period
=165.629/278.622*91
=54.10

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

PSS World Medical, Inc.'s Days Sales of Inventory for the six months ended in Sep. 2012 is

Days Sales of Inventory (DSI)=Inventory (Q: Sep. 2012 )/Revenue (Q: Sep. 2012 )*Days in Period
=165.629/420.798*91
=35.82

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

PSS World Medical, Inc.'s Inventory Turnover for the quarter that ended in Sep. 2012 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Sep. 2012 ) / Average Inventory (Q: Sep. 2012 )
=278.622 / 165.629
=1.68

* 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.

PSS World Medical, Inc. Annual Data

Mar03Mar04Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12
inventory2rev 0.070.070.090.110.100.100.110.110.110.10

PSS World Medical, Inc. Semi-Annual Data

Jun10Sep10Dec10Mar11Jun11Sep11Dec11Mar12Jun12Sep12
inventory2rev 0.450.450.470.390.430.440.490.400.430.39
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