GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Sandvik AB (OTCPK:SDVKF) » Definitions » Inventory-to-Revenue

Sandvik AB (Sandvik AB) Inventory-to-Revenue : 1.22 (As of Mar. 2024)


View and export this data going back to . Start your Free Trial

What is Sandvik AB Inventory-to-Revenue?

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. Sandvik AB's Average Total Inventories for the quarter that ended in Mar. 2024 was $3,402 Mil. Sandvik AB's Revenue for the three months ended in Mar. 2024 was $2,786 Mil. Sandvik AB's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 1.22.

Sandvik AB's Inventory-to-Revenue for the quarter that ended in Mar. 2024 increased from Dec. 2023 (1.09) to Dec. 2023 (1.22)

An increase in Inventory-to-Revenue 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 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. Sandvik AB's Days Inventory for the three months ended in Mar. 2024 was 179.20.

Inventory Turnover measures how fast the company turns over its inventory within a year. Sandvik AB's Inventory Turnover for the quarter that ended in Mar. 2024 was 0.51.


Sandvik AB Inventory-to-Revenue Historical Data

The historical data trend for Sandvik AB's Inventory-to-Revenue can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Sandvik AB Inventory-to-Revenue Chart

Sandvik AB Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Inventory-to-Revenue
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.24 0.25 0.31 0.31 0.27

Sandvik AB Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Inventory-to-Revenue Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.17 1.20 1.24 1.09 1.22

Competitive Comparison of Sandvik AB's Inventory-to-Revenue

For the Specialty Industrial Machinery subindustry, Sandvik AB's Inventory-to-Revenue, along with its competitors' market caps and Inventory-to-Revenue data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Sandvik AB's Inventory-to-Revenue Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Sandvik AB's Inventory-to-Revenue distribution charts can be found below:

* The bar in red indicates where Sandvik AB's Inventory-to-Revenue falls into.



Sandvik AB Inventory-to-Revenue Calculation

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.

Sandvik AB's Inventory-to-Revenue for the fiscal year that ended in Dec. 2023 is calculated as

Inventory-to-Revenue (A: Dec. 2023 )
=Average Total Inventories / Revenue
=( (Total Inventories (A: Dec. 2022 ) + Total Inventories (A: Dec. 2023 )) / count ) / Revenue (A: Dec. 2023 )
=( (3374.35 + 3343.96) / 2 ) / 12332.612
=3359.155 / 12332.612
=0.27

Sandvik AB's Inventory-to-Revenue for the quarter that ended in Mar. 2024 is calculated as

Inventory-to-Revenue (Q: Mar. 2024 )
=Average Total Inventories / Revenue
=( (Total Inventories (Q: Dec. 2023 ) + Total Inventories (Q: Mar. 2024 )) / count ) / Revenue (Q: Mar. 2024 )
=( (3343.96 + 3459.895) / 2 ) / 2785.627
=3401.9275 / 2785.627
=1.22

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Sandvik AB  (OTCPK:SDVKF) Inventory-to-Revenue Explanation

An increase in Inventory-to-Revenue 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 may signal an oncoming cash flow problem.

Likewise, a decrease in the Inventory-to-Revenue 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, 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.

Sandvik AB's Days Inventory for the three months ended in Mar. 2024 is calculated as:

Days Inventory=Average Total Inventories (Q: Mar. 2024 )/Cost of Goods Sold (Q: Mar. 2024 )*Days in Period
=3401.9275/1732.252*365 / 4
=179.20

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

Sandvik AB's Inventory Turnover for the quarter that ended in Mar. 2024 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Mar. 2024 ) / Average Total Inventories (Q: Mar. 2024 )
=1732.252 / 3401.9275
=0.51

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Sandvik AB Inventory-to-Revenue Related Terms

Thank you for viewing the detailed overview of Sandvik AB's Inventory-to-Revenue provided by GuruFocus.com. Please click on the following links to see related term pages.


Sandvik AB (Sandvik AB) Business Description

Address
Kungsbron 1, Section G, Floor 6, Stockholm, SWE, 111 22
Sandvik is a manufacturer of specialized tools and mining equipment used predominantly by global mining, engineering, and automotive customers. The company's core operations are in metal cutting and mining equipment. The company has a well-documented history, having been founded in 1862 and listed on the Nordic Exchange in Stockholm in 1901.Europe is the largest contributor to group sales at 27%, followed by North America 25%, Asia 19%, Australia 12%, Africa/Middle East 11%, and South America 6%.