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HD Supply Holdings (FRA:5HD) Inventory-to-Revenue : 0.73 (As of Oct. 2020)


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What is HD Supply Holdings 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. HD Supply Holdings's Average Total Inventories for the quarter that ended in Oct. 2020 was €511 Mil. HD Supply Holdings's Revenue for the three months ended in Oct. 2020 was €703 Mil. HD Supply Holdings's Inventory-to-Revenue for the quarter that ended in Oct. 2020 was 0.73.

HD Supply Holdings's Inventory-to-Revenue for the quarter that ended in Oct. 2020 increased from Jul. 2020 (0.54) to Jul. 2020 (0.73)

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. HD Supply Holdings's Days Inventory for the three months ended in Oct. 2020 was 114.57.

Inventory Turnover measures how fast the company turns over its inventory within a year. HD Supply Holdings's Inventory Turnover for the quarter that ended in Oct. 2020 was 0.80.


HD Supply Holdings Inventory-to-Revenue Historical Data

The historical data trend for HD Supply Holdings'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.

HD Supply Holdings Inventory-to-Revenue Chart

HD Supply Holdings Annual Data
Trend Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20
Inventory-to-Revenue
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.16 0.14 0.13 0.12 0.12

HD Supply Holdings Quarterly Data
Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20
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 0.98 0.21 0.57 0.54 0.73

Competitive Comparison of HD Supply Holdings's Inventory-to-Revenue

For the Industrial Distribution subindustry, HD Supply Holdings'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.


HD Supply Holdings's Inventory-to-Revenue Distribution in the Industrial Distribution Industry

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

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



HD Supply Holdings 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.

HD Supply Holdings's Inventory-to-Revenue for the fiscal year that ended in Jan. 2020 is calculated as

Inventory-to-Revenue (A: Jan. 2020 )
=Average Total Inventories / Revenue
=( (Total Inventories (A: Jan. 2019 ) + Total Inventories (A: Jan. 2020 )) / count ) / Revenue (A: Jan. 2020 )
=( (671.016 + 694.671) / 2 ) / 5537.546
=682.8435 / 5537.546
=0.12

HD Supply Holdings's Inventory-to-Revenue for the quarter that ended in Oct. 2020 is calculated as

Inventory-to-Revenue (Q: Oct. 2020 )
=Average Total Inventories / Revenue
=( (Total Inventories (Q: Jul. 2020 ) + Total Inventories (Q: Oct. 2020 )) / count ) / Revenue (Q: Oct. 2020 )
=( (692.52 + 330.31) / 2 ) / 703.375
=511.415 / 703.375
=0.73

* 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.


HD Supply Holdings  (FRA:5HD) 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.

HD Supply Holdings's Days Inventory for the three months ended in Oct. 2020 is calculated as:

Days Inventory=Average Total Inventories (Q: Oct. 2020 )/Cost of Goods Sold (Q: Oct. 2020 )*Days in Period
=511.415/407.32*365 / 4
=114.57

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

HD Supply Holdings's Inventory Turnover for the quarter that ended in Oct. 2020 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Oct. 2020 ) / Average Total Inventories (Q: Oct. 2020 )
=407.32 / 511.415
=0.80

* 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.


HD Supply Holdings Inventory-to-Revenue Related Terms

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HD Supply Holdings (FRA:5HD) Business Description

Traded in Other Exchanges
N/A
Address
3100 Cumberland Boulevard, Suite 1480, Atlanta, GA, USA, 30339
Through a combination of acquisitions and organic growth, HD Supply has become one of the largest industrial distributors in North America. It is currently the market leader in the two sectors in which it operates (facilities and home improvement maintenance, repair, and operations and specialty construction). Today, HD Supply offers approximately 600,000 stock-keeping units and serves 500,000 customers through 270 branches and 44 distribution centers across the United States and Canada. HD Supply sold its construction and industrial business for $2.5 billion net of taxes and transaction costs in October 2020. On Nov. 16, 2020, Home Depot announced it had entered into a definitive agreement to acquire HD Supply for $56 per share.

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