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. Watsco's Average Total Inventories for the quarter that ended in Dec. 2023 was $1,449 Mil. Watsco's Revenue for the
three
months ended in Dec. 2023 was $1,603 Mil.
Watsco's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.90.
Watsco's Inventory-to-Revenue for the quarter that ended in Dec. 2023
increased
from Sep. 2023 (0.76) to Sep. 2023 (0.90)
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.
Watsco's Days Inventory for the
three
months ended in Dec. 2023 was 111.19.
Inventory Turnover measures how fast the company turns over its inventory within a year.
Watsco's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.82.
Watsco Inventory-to-Revenue Historical Data
The historical data trend for Watsco'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.
Watsco Annual Data
Trend
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Inventory-to-Revenue
0.18
0.17
0.15
0.17
0.19
Watsco Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Inventory-to-Revenue
0.87
0.96
0.83
0.76
0.90
Competitive Comparison
For the Industrial Distribution subindustry, Watsco'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.
Watsco Inventory-to-Revenue Distribution
For the Industrial Distribution industry and Industrials sector, Watsco's Inventory-to-Revenue distribution charts can be found below:
* The bar in red indicates where Watsco's Inventory-to-Revenue falls into.
Watsco 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.
Watsco's Inventory-to-Revenue for the fiscal year that ended in Dec. 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.
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.
Watsco's Days Inventory for the
three
months ended in Dec. 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.
Watsco Inventory-to-Revenue Related Terms
Thank you for viewing the detailed overview of Watsco's Inventory-to-Revenue provided by GuruFocus.com. Please click on the following links to see related term pages.
Watsco is the largest heating, ventilation, air-conditioning, and refrigeration products distributor in North America. The company primarily operates in the United States (91% of 2022 revenue) with significant exposure in the Sunbelt states. Watsco also has operations in Canada (5% of sales) and Latin America and the Caribbean (4% of sales). The company's customer base consists of more than 120,000 dealers and contractors that serve the replacement and new construction HVACR markets for residential and light commercial applications.
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