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Zep (FRA:14Z) Inventory-to-Revenue : 0.52 (As of Feb. 2015)


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What is Zep 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. Zep's Average Total Inventories for the quarter that ended in Feb. 2015 was €73.9 Mil. Zep's Revenue for the three months ended in Feb. 2015 was €141.0 Mil. Zep's Inventory-to-Revenue for the quarter that ended in Feb. 2015 was 0.52.

Zep's Inventory-to-Revenue for the quarter that ended in Feb. 2015 increased from Nov. 2014 (0.49) to Nov. 2014 (0.52)

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. Zep's Days Inventory for the three months ended in Feb. 2015 was 87.21.

Inventory Turnover measures how fast the company turns over its inventory within a year. Zep's Inventory Turnover for the quarter that ended in Feb. 2015 was 1.05.


Zep Inventory-to-Revenue Historical Data

The historical data trend for Zep'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.

Zep Inventory-to-Revenue Chart

Zep Annual Data
Trend Aug05 Aug06 Aug07 Aug08 Aug09 Aug10 Aug11 Aug12 Aug13 Aug14
Inventory-to-Revenue
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.08 0.09 0.10 0.11 0.10

Zep Quarterly Data
May10 Aug10 Nov10 Feb11 May11 Aug11 Nov11 Feb12 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15
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 0.50 0.41 0.40 0.49 0.52

Competitive Comparison of Zep's Inventory-to-Revenue

For the Specialty Chemicals subindustry, Zep'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.


Zep's Inventory-to-Revenue Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Zep's Inventory-to-Revenue distribution charts can be found below:

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



Zep 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.

Zep's Inventory-to-Revenue for the fiscal year that ended in Aug. 2014 is calculated as

Inventory-to-Revenue (A: Aug. 2014 )
=Average Total Inventories / Revenue
=( (Total Inventories (A: Aug. 2013 ) + Total Inventories (A: Aug. 2014 )) / count ) / Revenue (A: Aug. 2014 )
=( (51.543 + 57.038) / 2 ) / 523.063
=54.2905 / 523.063
=0.10

Zep's Inventory-to-Revenue for the quarter that ended in Feb. 2015 is calculated as

Inventory-to-Revenue (Q: Feb. 2015 )
=Average Total Inventories / Revenue
=( (Total Inventories (Q: Nov. 2014 ) + Total Inventories (Q: Feb. 2015 )) / count ) / Revenue (Q: Feb. 2015 )
=( (73.903 + 73.884) / 2 ) / 141.022
=73.8935 / 141.022
=0.52

* 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.


Zep  (FRA:14Z) 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.

Zep's Days Inventory for the three months ended in Feb. 2015 is calculated as:

Days Inventory=Average Total Inventories (Q: Feb. 2015 )/Cost of Goods Sold (Q: Feb. 2015 )*Days in Period
=73.8935/77.315*365 / 4
=87.21

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

Zep's Inventory Turnover for the quarter that ended in Feb. 2015 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Feb. 2015 ) / Average Total Inventories (Q: Feb. 2015 )
=77.315 / 73.8935
=1.05

* 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.


Zep Inventory-to-Revenue Related Terms

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Zep (FRA:14Z) Business Description

Traded in Other Exchanges
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Address
Zep Inc. was founded in 1937. It is a producer, marketer, and service provider of a range of cleaning and maintenance solutions for commercial, industrial, institutional, and consumer end-markets. Zeps product portfolio includes anti-bacterial and industrial hand care products, cleaners, degreasers, deodorizers, disinfectants, floor finishes, sanitizers, and pest and weed control products. It continually refreshes its product portfolio and service offerings. Zep reaches its customers through an experienced, international organization of sales representatives supported by highly skilled marketing, research and development and technical services teams, who collectively provide creative solutions for its customers' diverse cleaning and maintenance needs by utilizing their product expertise and providing customized value added services that it distinguish Zep among its competitors. Through its direct sales organization, Zep provides convenient, highly effective cleaning and maintenance solutions to customers in a broad array of commercial, industrial, and institutional end-markets, including transportation, food processing and service, manufacturing, government, and housekeeping. These customers include government entities and businesses ranging from small sole proprietorships to large corporations. It sells its products to customers mainly in the United States, Canada and Western Europe. Zep markes these products and services under well recognized and established brand names, such as Zep , Zep Commercial, Zep Professional, Enforcer, and Selig. Zep is its flagship brand and represents largest portfolio of cleaning and maintenance solutions for commercial, industrial, and institutional customers needing highly effective product solutions and professional technical support. Zep Commercial provides professional cleaning and plumbing chemical products targeted to contractors and small business owners and are currently sold through The Home Depot, HD Supply and other retailers. Zep Professional was introduced in fiscal year 2009 and represents its portfolio of cleaning and maintenance solutions that are offered to customers in the commercial, industrial, and institutional end-markets who prefer to acquire product through the distribution channel. Selig offers a limited assortment of cleaning solutions targeted to commercial, industrial and institutional customers. It produces a range of cleaning and maintenance solutions for commercial, industrial, institutional, and consumer customers. Zeps commercial, industrial, and institutional customers include government entities and businesses ranging from small sole proprietorships to large corporations as well as distributors. Its sales and service organization covers the United States, Canada, Italy, Belgium, Luxemburg, the Netherlands and certain other smaller markets. It manufactures products at six facilities located in the United States, Canada, the Netherlands, and Italy.The key raw materi

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