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ZBB Energy Corp (AMEX:ZBB)
Inventory to Revenue
4.74 (As of Dec. 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. ZBB Energy Corp's average inventory for the quarter that ended in Dec. 2014 was \$1.43 Mil. ZBB Energy Corp's revenue for the three months ended in Dec. 2014 was \$0.30 Mil. ZBB Energy Corp's inventory to revenue ratio for the quarter that ended in Dec. 2014 was 4.74.

ZBB Energy Corp's inventory to revenue ratio for the quarter that ended in Dec. 2014 increased from Sep. 2014 (2.44) to Sep. 2014 (4.74)

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. ZBB Energy Corp's days inventory for the three months ended in Dec. 2014 was 560.68.

Inventory can be measured by Days Sales of Inventory (DSI). ZBB Energy Corp's days sales of inventory (DSI) for the three months ended in Dec. 2014 was 432.15.

Inventory turnover measures how fast the company turns over its inventory within a year. ZBB Energy Corp's inventory turnover for the quarter that ended in Dec. 2014 was 0.16.

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.

ZBB Energy Corp's Inventory to Revenue for the fiscal year that ended in Jun. 2014 is calculated as

 Inventory to Revenue (A: Jun. 2014 ) = Average Inventory / Revenue = ( (Inventory (A: Jun. 2013 ) + Inventory (A: Jun. 2014 )) / 2 ) / Revenue (A: Jun. 2014 ) = ( (2.46 + 1.353) / 2 ) / 7.852 = 1.9065 / 7.852 = 0.24

ZBB Energy Corp's Inventory to Revenue for the quarter that ended in Dec. 2014 is calculated as

 Inventory to Revenue (Q: Dec. 2014 ) = Average Inventory / Revenue = ( (Inventory (Q: Sep. 2014 ) + Inventory (Q: Dec. 2014 )) / 2 ) / Revenue (Q: Dec. 2014 ) = ( (1.4 + 1.451) / 2 ) / 0.301 = 1.4255 / 0.301 = 4.74

* 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.

ZBB Energy Corp's Days Inventory for the three months ended in Dec. 2014 is calculated as:

 Days Inventory = Average Inventory (Q: Dec. 2014 ) / Cost of Goods Sold (Q: Dec. 2014 ) * Days in Period = 1.4255 / 0.232 * 365 / 4 = 560.68

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

ZBB Energy Corp's Days Sales of Inventory for the three months ended in Dec. 2014 is

 Days Sales of Inventory (DSI) = Average Inventory (Q: Dec. 2014 ) / Revenue (Q: Dec. 2014 ) * Days in Period = 1.4255 / 0.301 * 365 / 4 = 432.15

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

ZBB Energy Corp's Inventory Turnover for the quarter that ended in Dec. 2014 is calculated as

 Inventory Turnover = Cost of Goods Sold (Q: Dec. 2014 ) / Average Inventory (Q: Dec. 2014 ) = 0.232 / 1.4255 = 0.16

* 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.

ZBB Energy Corp Annual Data

 Jun05 Jun06 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 inventory2rev 0.00 1.32 2.31 1.01 1.25 0.74 0.66 0.48 0.35 0.24

ZBB Energy Corp Quarterly Data

 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 inventory2rev 1.85 1.22 1.30 2.49 2.17 2.24 0.42 1.24 2.44 4.74
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