GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Forge Group Ltd (ASX:FGE) » Definitions » Inventory-to-Revenue

Forge Group (ASX:FGE) Inventory-to-Revenue : 0.08 (As of Jun. 2013)


View and export this data going back to . Start your Free Trial

What is Forge Group Inventory-to-Revenue?

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. Forge Group's Average Total Inventories for the quarter that ended in Jun. 2013 was A$81 Mil. Forge Group's Revenue for the six months ended in Jun. 2013 was A$1,054 Mil. Forge Group's Inventory-to-Revenue for the quarter that ended in Jun. 2013 was 0.08.

Forge Group's Inventory-to-Revenue for the quarter that ended in Jun. 2013 increased from Jun. 2012 (0.03) to Jun. 2012 (0.08)

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. Forge Group's Days Inventory for the six months ended in Jun. 2013 was 22.50.

Inventory Turnover measures how fast the company turns over its inventory within a year. Forge Group's Inventory Turnover for the quarter that ended in Jun. 2013 was 8.11.


Forge Group Inventory-to-Revenue Historical Data

The historical data trend for Forge Group'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.

Forge Group Inventory-to-Revenue Chart

Forge Group Annual Data
Trend Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13
Inventory-to-Revenue
Get a 7-Day Free Trial 0.04 0.04 0.05 0.03 0.08

Forge Group Semi-Annual Data
Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13
Inventory-to-Revenue Get a 7-Day Free Trial 0.04 0.04 0.05 0.03 0.08

Competitive Comparison of Forge Group's Inventory-to-Revenue

For the Engineering & Construction subindustry, Forge Group'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.


Forge Group's Inventory-to-Revenue Distribution in the Construction Industry

For the Construction industry and Industrials sector, Forge Group's Inventory-to-Revenue distribution charts can be found below:

* The bar in red indicates where Forge Group's Inventory-to-Revenue falls into.



Forge Group 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.

Forge Group's Inventory-to-Revenue for the fiscal year that ended in Jun. 2013 is calculated as

Inventory-to-Revenue (A: Jun. 2013 )
=Average Total Inventories / Revenue
=( (Total Inventories (A: Jun. 2012 ) + Total Inventories (A: Jun. 2013 )) / count ) / Revenue (A: Jun. 2013 )
=( (11.331 + 150.491) / 2 ) / 1054.1
=80.911 / 1054.1
=0.08

Forge Group's Inventory-to-Revenue for the quarter that ended in Jun. 2013 is calculated as

Inventory-to-Revenue (Q: Jun. 2013 )
=Average Total Inventories / Revenue
=( (Total Inventories (Q: Jun. 2012 ) + Total Inventories (Q: Jun. 2013 )) / count ) / Revenue (Q: Jun. 2013 )
=( (11.331 + 150.491) / 2 ) / 1054.1
=80.911 / 1054.1
=0.08

* 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.


Forge Group  (ASX:FGE) Inventory-to-Revenue Explanation

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.

Forge Group's Days Inventory for the six months ended in Jun. 2013 is calculated as:

Days Inventory=Average Total Inventories (Q: Jun. 2013 )/Cost of Goods Sold (Q: Jun. 2013 )*Days in Period
=80.911/656.334*365 / 2
=22.50

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

Forge Group's Inventory Turnover for the quarter that ended in Jun. 2013 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Jun. 2013 ) / Average Total Inventories (Q: Jun. 2013 )
=656.334 / 80.911
=8.11

* 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.


Forge Group Inventory-to-Revenue Related Terms

Thank you for viewing the detailed overview of Forge Group's Inventory-to-Revenue provided by GuruFocus.com. Please click on the following links to see related term pages.


Forge Group (ASX:FGE) Business Description

Traded in Other Exchanges
N/A
Address
Forge Group Ltd provides construction, commercial building, engineering, maintenance and workshop fabrication services. Its operations are segmented into four areas - Minerals & Resources, Power, Construction and Asset Management. The Minerals & Resources segment provides a wide range of engineering, design and construction services for the mining and metals sector. The Power segment provides turnkey power generation solutions to the energy and utilities sectors. The Construction segment offers a suite of construction services that covers all disciplines including heavy civil, structural, mechanical, piping, tanks, electrical, instrumentation, and building. Further, the Asset Management segment offers various asset management services. The Company has operational footprints across Australia, North America, Africa and Asia.

Forge Group (ASX:FGE) Headlines

No Headlines