Market Cap : 6.32 B | Enterprise Value : 5.78 B | PE Ratio : 20.38 | PB Ratio : 2.94 |
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GEA Group AG's total inventories for the quarter that ended in Mar. 2022 was €814 Mil. GEA Group AG's average total inventories from the quarter that ended in Dec. 2021 to the quarter that ended in Mar. 2022 was €764 Mil.
In Ben Graham's calculation of Net-Net Working Capital, inventory is only considered worth half of its book value. GEA Group AG's Net-Net Working Capital per share for the quarter that ended in Mar. 2022 was €-10.59.
Inventory can be measured by days sales of inventory (DSI). GEA Group AG's days sales of inventory (DSI) for the three months ended in Mar. 2022 was 61.92.
Days Inventory indicates the number of days of goods in sales that a company has in the inventory. GEA Group AG's Days Inventory for the three months ended in Mar. 2022 was 93.30.
Inventory Turnover measures how fast the company turns over its inventory within a year. GEA Group AG's Inventory Turnover for the quarter that ended in Mar. 2022 was 0.98.
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. GEA Group AG's Inventory-to-Revenue for the quarter that ended in Mar. 2022 was 0.68.
The historical data trend for GEA Group AG's Total Inventories 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.
Total Inventories includes the raw materials, work-in-process goods and completely finished goods of a company. It is a portion of a company's current assets.
Inventory control is an important part of business operation. If a company does not have enough inventory, it may not be able to meet customers' required delivery time. If it has too much inventory, the cost of holding the inventory can be high.
1. In Ben Graham's calculation of Net-Net Working Capital (NNWC), inventory is only considered worth half of its book value.
GEA Group AG's Net-Net Working Capital Per Share for the quarter that ended in Mar. 2022 is
Net-Net Working Capital Per Share (Q: Mar. 2022 ) | |||||||
= | (Cash And Cash Equivalents | + | 0.75 * Accounts Receivable | + | 0.5 * Total Inventories | - | Total Liabilities |
- | Preferred Stock | - | Minority Interest) | / | Shares Outstanding (EOP) | ||
= | (869.985 | + | 0.75 * 644.425 | + | 0.5 * 813.751 | - | 3622.939 |
- | 0 | - | 0.417) | / | 175.898 | ||
= | -10.59 |
2. Inventory can be measured by Days Sales of Inventory (DSI).
GEA Group AG's Days Sales of Inventory for the three months ended in Mar. 2022 is
Days Sales of Inventory (DSI) | |||||
= | Total Inventories (Q: Mar. 2022 ) | / | Revenue (Q: Mar. 2022 ) | * | Days in Period |
= | 764.3385 | / | 1126.389 | * | 365 / 4 |
= | 61.92 |
3. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.
GEA Group AG's Days Inventory for the three months ended in Mar. 2022 is calculated as:
Days Inventory | = | Total Inventories (Q: Mar. 2022 ) | / | Cost of Goods Sold (Q: Mar. 2022 ) | * | Days in Period |
= | 764.3385 | / | 747.575 | * | 365 / 4 | |
= | 93.30 |
4. Inventory Turnover measures how fast the company turns over its inventory within a year.
GEA Group AG's Inventory Turnover for the quarter that ended in Mar. 2022 is calculated as
Inventory Turnover | = | Cost of Goods Sold (Q: Mar. 2022 ) | / | Total Inventories (Q: Mar. 2022 ) |
= | 747.575 | / | 764.3385 | |
= | 0.98 |
5. 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.
GEA Group AG's Inventory to Revenue for the quarter that ended in Mar. 2022 is calculated as
Inventory-to-Revenue | = | Total Inventories (Q: Mar. 2022 ) | / | Revenue (Q: Mar. 2022 ) |
= | 764.3385 | / | 1126.389 | |
= | 0.68 |
* 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.
Manufacturers with durable competitive advantages have the advantage that the products they sell do not change, and therefore will never become obsolete. Buffett likes this advantage.
When identifying manufacturers with durable competitive advantage, look for inventory and net earnings that rise correspondingly. This indicates that the company is finding profitable ways to increase sales which called for an increase in inventory.
Manufacturers with inventories that spike up and down are indicative of competitive industries subject to boom and bust.
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