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Ferguson Enterprises (CHIX:FERGL) Inventory-to-Revenue : 0.53 (As of Jul. 2024)


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What is Ferguson Enterprises 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. Ferguson Enterprises's Average Total Inventories for the quarter that ended in Jul. 2024 was £3,271 Mil. Ferguson Enterprises's Revenue for the three months ended in Jul. 2024 was £6,174 Mil. Ferguson Enterprises's Inventory-to-Revenue for the quarter that ended in Jul. 2024 was 0.53.

Ferguson Enterprises's Inventory-to-Revenue for the quarter that ended in Jul. 2024 declined from Apr. 2024 (0.55) to Apr. 2024 (0.53)

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.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Ferguson Enterprises's Days Inventory for the three months ended in Jul. 2024 was 70.03.

Inventory Turnover measures how fast the company turns over its inventory within a year. Ferguson Enterprises's Inventory Turnover for the quarter that ended in Jul. 2024 was 1.30.


Ferguson Enterprises Inventory-to-Revenue Historical Data

The historical data trend for Ferguson Enterprises'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.

Ferguson Enterprises Inventory-to-Revenue Chart

Ferguson Enterprises Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24
Inventory-to-Revenue
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.14 0.14 0.13 0.14 0.14

Ferguson Enterprises Quarterly Data
Jan19 Jul19 Jan20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24
Inventory-to-Revenue Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.52 0.51 0.62 0.55 0.53

Competitive Comparison of Ferguson Enterprises's Inventory-to-Revenue

For the Industrial Distribution subindustry, Ferguson Enterprises'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.


Ferguson Enterprises's Inventory-to-Revenue Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Ferguson Enterprises's Inventory-to-Revenue distribution charts can be found below:

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



Ferguson Enterprises 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.

Ferguson Enterprises's Inventory-to-Revenue for the fiscal year that ended in Jul. 2024 is calculated as

Inventory-to-Revenue (A: Jul. 2024 )
=Average Total Inventories / Revenue
=( (Total Inventories (A: Jul. 2023 ) + Total Inventories (A: Jul. 2024 )) / count ) / Revenue (A: Jul. 2024 )
=( (3024.848 + 3254.076) / 2 ) / 23026.395
=3139.462 / 23026.395
=0.14

Ferguson Enterprises's Inventory-to-Revenue for the quarter that ended in Jul. 2024 is calculated as

Inventory-to-Revenue (Q: Jul. 2024 )
=Average Total Inventories / Revenue
=( (Total Inventories (Q: Apr. 2024 ) + Total Inventories (Q: Jul. 2024 )) / count ) / Revenue (Q: Jul. 2024 )
=( (3287.885 + 3254.076) / 2 ) / 6174.042
=3270.9805 / 6174.042
=0.53

* 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.


Ferguson Enterprises  (CHIX:FERGl) 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.

Ferguson Enterprises's Days Inventory for the three months ended in Jul. 2024 is calculated as:

Days Inventory=Average Total Inventories (Q: Jul. 2024 )/Cost of Goods Sold (Q: Jul. 2024 )*Days in Period
=3270.9805/4261.845*365 / 4
=70.03

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

Ferguson Enterprises's Inventory Turnover for the quarter that ended in Jul. 2024 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Jul. 2024 ) / Average Total Inventories (Q: Jul. 2024 )
=4261.845 / 3270.9805
=1.30

* 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.


Ferguson Enterprises Inventory-to-Revenue Related Terms

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Ferguson Enterprises Business Description

Traded in Other Exchanges
Address
1020 Eskdale Road, Winnersh Triangle, Wokingham, Berkshire, GBR, RG41 5TS
Ferguson distributes plumbing and HVAC products primarily to repair, maintenance and improvement, new construction, and civil infrastructure markets. It serves over 1 million customers and sources products from 37,000 suppliers. Ferguson engages customers through approximately 1,700 North American branches, over the phone, online, and in residential showrooms. In fiscal 2023, Ferguson derived 95% of its nearly $30 billion of sales in the U.S. According to Modern Distribution Management, Ferguson is the largest industrial and construction distributor in North America. The firm sold its U.K. business in 2021 and is now solely focused on the North American market.

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