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Xilinx Inc (NAS:XLNX)
Inventory to Revenue
0.43 (As of Sep. 2014)

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. Xilinx Inc's average inventory for the quarter that ended in Sep. 2014 was $260 Mil. Xilinx Inc's revenue for the three months ended in Sep. 2014 was $604 Mil. Xilinx Inc's inventory to revenue ratio for the quarter that ended in Sep. 2014 was 0.43.

Xilinx Inc's inventory to revenue ratio for the quarter that ended in Sep. 2014 increased from Jun. 2014 (0.40) to Jun. 2014 (0.43)

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. Xilinx Inc's days inventory for the three months ended in Sep. 2014 was 139.73.

Inventory can be measured by Days Sales of Inventory (DSI). Xilinx Inc's days sales of inventory (DSI) for the three months ended in Sep. 2014 was 39.22.

Inventory turnover measures how fast the company turns over its inventory within a year. Xilinx Inc's inventory turnover for the quarter that ended in Sep. 2014 was 0.65.


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.

Xilinx Inc's Inventory to Revenue for the fiscal year that ended in Mar. 2014 is calculated as

Inventory to Revenue (A: Mar. 2014 )
=Average Inventory / Revenue
=( (Inventory (A: Mar. 2013 ) + Inventory (A: Mar. 2014 )) / 2 ) / Revenue (A: Mar. 2014 )
=( (201.25 + 233.999) / 2 ) / 2382.531
=217.6245 / 2382.531
=0.09

Xilinx Inc's Inventory to Revenue for the quarter that ended in Sep. 2014 is calculated as

Inventory to Revenue (Q: Sep. 2014 )
=Average Inventory / Revenue
=( (Inventory (Q: Jun. 2014 ) + Inventory (Q: Sep. 2014 )) / 2 ) / Revenue (Q: Sep. 2014 )
=( (256.791 + 262.669) / 2 ) / 604.262
=259.73 / 604.262
=0.43

* 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.

Xilinx Inc's Days Inventory for the three months ended in Sep. 2014 is calculated as:

Days Inventory=Average Inventory (Q: Sep. 2014 )/Cost of Goods Sold (Q: Sep. 2014 )*Days in Period
=259.73/169.617*365 / 4
=139.73

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

Xilinx Inc's Days Sales of Inventory for the three months ended in Sep. 2014 is

Days Sales of Inventory (DSI)=Average Inventory (Q: Sep. 2014 )/Revenue (Q: Sep. 2014 )*Days in Period
=259.73/604.262*365 / 4
=39.22

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

Xilinx Inc's Inventory Turnover for the quarter that ended in Sep. 2014 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Sep. 2014 ) / Average Inventory (Q: Sep. 2014 )
=169.617 / 259.73
=0.65

* 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.

Xilinx Inc Annual Data

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
inventory2rev 0.090.110.100.080.070.070.080.110.090.09

Xilinx Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
inventory2rev 0.340.370.420.400.340.310.330.360.400.43
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