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Tribune Media Co (OTCPK:TRBAA)
Inventory to Revenue
0.03 (As of Sep. 2008)

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. Tribune Media Co's inventory for the quarter that ended in Sep. 2008 was $32 Mil. Tribune Media Co's revenue for the three months ended in Sep. 2008 was $1,037 Mil. Tribune Media Co's inventory to revenue ratio for the quarter that ended in Sep. 2008 was 0.03.

Tribune Media Co's inventory to revenue ratio for the quarter that ended in Sep. 2008 increased from Jun. 2008 (0.03) to Jun. 2008 (0.03)

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.

Days inventory indicates the number of days of goods in sales that a company has in the inventory. Tribune Media Co's days inventory for the three months ended in Sep. 2008 was 4.87.

Inventory can be measured by Days Sales of Inventory (DSI). Tribune Media Co's days sales of inventory (DSI) for the three months ended in Sep. 2008 was 2.79.

Inventory turnover measures how fast the company turns over its inventory within a year. Tribune Media Co's inventory turnover for the quarter that ended in Sep. 2008 was 18.69.


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.

Tribune Media Co's Inventory to Revenue for the fiscal year that ended in Dec. 2007 is calculated as

Inventory to Revenue (A: Dec. 2007 )=Inventory (A: Dec. 2007 ) / Revenue (A: Dec. 2007 )
=0 / 5062.984
=0.00

Tribune Media Co's Inventory to Revenue for the quarter that ended in Sep. 2008 is calculated as

Inventory to Revenue (Q: Sep. 2008 )=Inventory (Q: Sep. 2008 ) / Revenue (Q: Sep. 2008 )
=31.792 / 1036.946
=0.03

* 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.

Tribune Media Co's Days Inventory for the three months ended in Sep. 2008 is calculated as:

Days Inventory=Inventory (Q: Sep. 2008 )/Cost of Goods Sold (Q: Sep. 2008 )*Days in Period
=31.792/594.161*91
=4.87

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

Tribune Media Co's Days Sales of Inventory for the three months ended in Sep. 2008 is

Days Sales of Inventory (DSI)=Inventory (Q: Sep. 2008 )/Revenue (Q: Sep. 2008 )*Days in Period
=31.792/1036.946*91
=2.79

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

Tribune Media Co's Inventory Turnover for the quarter that ended in Sep. 2008 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Sep. 2008 ) / Average Inventory (Q: Sep. 2008 )
=594.161 / 31.792
=18.69

* 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.

Tribune Media Co Annual Data

Dec98Dec99Dec00Dec01Dec02Dec03Dec04Dec05Dec06Dec07
inventory2rev 0.000.000.000.000.000.010.010.010.000.00

Tribune Media Co Quarterly Data

Jun06Sep06Dec06Mar07Jun07Sep07Dec07Mar08Jun08Sep08
inventory2rev 0.030.040.000.040.040.040.000.040.030.03
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