Smith & Nephew (Smith & Nephew) Inventory-to-Revenue

: 0.85 (As of Dec. 2023)

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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. Smith & Nephew's Average Total Inventories for the quarter that ended in Dec. 2023 was $2,403 Mil. Smith & Nephew's Revenue for the six months ended in Dec. 2023 was $2,815 Mil. Smith & Nephew's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.85.

Smith & Nephew's Inventory-to-Revenue for the quarter that ended in Dec. 2023 increased from Jun. 2023 (0.84) to Jun. 2023 (0.85)

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. Smith & Nephew's Days Inventory for the six months ended in Dec. 2023 was 490.55.

Inventory Turnover measures how fast the company turns over its inventory within a year. Smith & Nephew's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.37.

Smith & Nephew Inventory-to-Revenue Historical Data

The historical data trend for Smith & Nephew'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.

Smith & Nephew Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory-to-Revenue

0.29

0.36

0.34

0.39

0.41

Smith & Nephew Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Inventory-to-Revenue																0.69	0.74	0.80	0.84	0.85

Competitive Comparison

For the Medical Devices subindustry, Smith & Nephew'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.

Smith & Nephew Inventory-to-Revenue Distribution

For the Medical Devices & Instruments industry and Healthcare sector, Smith & Nephew's Inventory-to-Revenue distribution charts can be found below:

* The bar in red indicates where Smith & Nephew's Inventory-to-Revenue falls into.

Smith & Nephew Inventory-to-Revenue Calculation

Smith & Nephew'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 )
=	( (2205	+	2395)	/	2 )	/	5549
=	2300					/	5549
=	0.41

Smith & Nephew's Inventory-to-Revenue for the quarter that ended in Dec. 2023 is calculated as

	Inventory-to-Revenue (Q: Dec. 2023 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (Q: Jun. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )	/	Revenue (Q: Dec. 2023 )
=	( (2411	+	2395)	/	2 )	/	2815
=	2403					/	2815
=	0.85

Smith & Nephew (NYSE:SNN) Inventory-to-Revenue Explanation

An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:

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.

Smith & Nephew's Days Inventory for the six months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	2403	/	894	*	365 / 2
	=	490.55

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

Smith & Nephew's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Dec. 2023 )	/	Average Total Inventories (Q: Dec. 2023 )
	=	894	/	2403
	=	0.37

Smith & Nephew Inventory-to-Revenue Related Terms

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Smith & Nephew (Smith & Nephew) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Smith & Nephew PLC (NYSE:SNN) » Definitions » Inventory-to-Revenue

Comparable Companies

Traded in Other Exchanges

SNNUF:USA SNl:UK SN.:UK NPW1:Germany NPWA:Germany NPW1:Germany S1NN34:Brazil

Address

Hatters Lane, Building 5, Croxley Park, Watford, Hertfordshire, GBR, WD18 8YE

Website

https://www.smith-nephew.com

Smith & Nephew designs, manufactures, and markets orthopedic devices, sports medicine and arthroscopic technologies, and wound-care solutions. Roughly 41% of the U.K.-based firm's revenue comes from orthopedic products, and another 30% is sports medicine and ENT. The remaining 29% of revenue is from the advanced wound therapy segment. Roughly half of Smith & Nephew's total revenue comes from the United States, just over 30% is from other developed markets, and emerging markets account for the remainder.