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. Smiths Group's Average Total Inventories for the quarter that ended in Jan. 2024 was $823 Mil. Smiths Group's Revenue for the
six
months ended in Jan. 2024 was $1,915 Mil.
Smiths Group's Inventory-to-Revenue for the quarter that ended in Jan. 2024 was 0.43.
Smiths Group's Inventory-to-Revenue for the quarter that ended in Jan. 2024
increased
from Jul. 2023 (0.42) to Jul. 2023 (0.43)
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.
Smiths Group's Days Inventory for the
six
months ended in Jan. 2024 was 125.05.
Inventory Turnover measures how fast the company turns over its inventory within a year.
Smiths Group's Inventory Turnover for the quarter that ended in Jan. 2024 was 1.46.
Smiths Group Inventory-to-Revenue Historical Data
The historical data trend for Smiths Group'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.
Competitive Comparison of Smiths Group's Inventory-to-Revenue
For the Specialty Industrial Machinery subindustry, Smiths Group'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.
Smiths Group's Inventory-to-Revenue Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Smiths Group's Inventory-to-Revenue distribution charts can be found below:
* The bar in red indicates where Smiths Group's Inventory-to-Revenue falls into.
Smiths Group 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.
Smiths Group's Inventory-to-Revenue for the fiscal year that ended in Jul. 2023 is calculated as
* 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.
Smiths Group (OTCPK:SMGZY) 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.
Smiths Group's Days Inventory for the
six
months ended in Jan. 2024 is calculated as:
* 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.
Smiths Group Inventory-to-Revenue Related Terms
Thank you for viewing the detailed overview of Smiths Group's Inventory-to-Revenue provided by GuruFocus.com. Please click on the following links to see related term pages.
With its start as a London jeweler in the 19th century, Smiths Group has for most of its history operated as a company operating disparate but economically attractive businesses. Thematically, it runs businesses that manufacture niche products in security- or safety-sensitive industries. Today, the business is split across four divisions: mechanical seals, weapons detection, electrical connectors, and specialized hoses. The end customers for these products include airports, NASA, government security or defense departments, and hospitals.
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