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TAL Education Group (NYSE:XRS)
Inventory to Revenue
0.00 (As of Feb. 2016)

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. TAL Education Group's average inventory for the quarter that ended in Feb. 2016 was \$0.5 Mil. TAL Education Group's revenue for the three months ended in Feb. 2016 was \$175.0 Mil. TAL Education Group's inventory to revenue ratio for the quarter that ended in Feb. 2016 was 0.00.

TAL Education Group's inventory to revenue ratio for the quarter that ended in Feb. 2016 stayed the same from Nov. 2015 (0.00) to Nov. 2015 (0.00)

Days inventory indicates the number of days of goods in sales that a company has in the inventory. TAL Education Group's days inventory for the three months ended in Feb. 2016 was 0.49.

Inventory can be measured by Days Sales of Inventory (DSI). TAL Education Group's days sales of inventory (DSI) for the three months ended in Feb. 2016 was 0.25.

Inventory turnover measures how fast the company turns over its inventory within a year. TAL Education Group's inventory turnover for the quarter that ended in Feb. 2016 was 185.33.

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.

TAL Education Group's Inventory to Revenue for the fiscal year that ended in Feb. 2016 is calculated as

 Inventory to Revenue (A: Feb. 2016 ) = Average Inventory / Revenue = ( (Inventory (A: Feb. 2015 ) + Inventory (A: Feb. 2016 )) / 2 ) / Revenue (A: Feb. 2016 ) = ( (0.544 + 0.6) / 2 ) / 619.949 = 0.572 / 619.949 = 0.00

TAL Education Group's Inventory to Revenue for the quarter that ended in Feb. 2016 is calculated as

 Inventory to Revenue (Q: Feb. 2016 ) = Average Inventory / Revenue = ( (Inventory (Q: Nov. 2015 ) + Inventory (Q: Feb. 2016 )) / 2 ) / Revenue (Q: Feb. 2016 ) = ( (0.358 + 0.6) / 2 ) / 175.049 = 0.479 / 175.049 = 0.00

* 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.

TAL Education Group's Days Inventory for the three months ended in Feb. 2016 is calculated as:

 Days Inventory = Average Inventory (Q: Feb. 2016 ) / Cost of Goods Sold (Q: Feb. 2016 ) * Days in Period = 0.479 / 88.774 * 365 / 4 = 0.49

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

TAL Education Group's Days Sales of Inventory for the three months ended in Feb. 2016 is

 Days Sales of Inventory (DSI) = Average Inventory (Q: Feb. 2016 ) / Revenue (Q: Feb. 2016 ) * Days in Period = 0.479 / 175.049 * 365 / 4 = 0.25

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

TAL Education Group's Inventory Turnover for the quarter that ended in Feb. 2016 is calculated as

 Inventory Turnover = Cost of Goods Sold (Q: Feb. 2016 ) / Average Inventory (Q: Feb. 2016 ) = 88.774 / 0.479 = 185.33

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

TAL Education Group Annual Data

 Feb09 Feb10 Feb11 Feb12 Feb13 Feb14 Feb15 Feb16 inventory2rev 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

TAL Education Group Quarterly Data

 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 inventory2rev 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
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