DAVIDsTEA (FRA:DAT) Inventory-to-Revenue : 1.89 (As of Oct. 2022)

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What is DAVIDsTEA 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. DAVIDsTEA's Average Total Inventories for the quarter that ended in Oct. 2022 was €22.60 Mil. DAVIDsTEA's Revenue for the three months ended in Oct. 2022 was €11.99 Mil. DAVIDsTEA's Inventory-to-Revenue for the quarter that ended in Oct. 2022 was 1.89.

DAVIDsTEA's Inventory-to-Revenue for the quarter that ended in Oct. 2022 declined from Jul. 2022 (1.89) to Jul. 2022 (1.89)

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. DAVIDsTEA's Days Inventory for the three months ended in Oct. 2022 was 281.16.

Inventory Turnover measures how fast the company turns over its inventory within a year. DAVIDsTEA's Inventory Turnover for the quarter that ended in Oct. 2022 was 0.32.

DAVIDsTEA Inventory-to-Revenue Historical Data

The historical data trend for DAVIDsTEA'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.

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DAVIDsTEA Inventory-to-Revenue Chart

DAVIDsTEA Annual Data

Trend

Jan13

Jan14

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Inventory-to-Revenue

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0.13

0.14

0.19

0.25

DAVIDsTEA Quarterly Data
	Jan18	Apr18	Jul18	Oct18	Jan19	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22
Inventory-to-Revenue	Get a 7-Day Free Trial															1.73	0.88	1.42	1.89	1.89

Competitive Comparison of DAVIDsTEA's Inventory-to-Revenue

For the Packaged Foods subindustry, DAVIDsTEA'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.

DAVIDsTEA's Inventory-to-Revenue Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, DAVIDsTEA's Inventory-to-Revenue distribution charts can be found below:

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

DAVIDsTEA Inventory-to-Revenue Calculation

DAVIDsTEA's Inventory-to-Revenue for the fiscal year that ended in Jan. 2022 is calculated as

	Inventory-to-Revenue (A: Jan. 2022 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (A: Jan. 2021 )	+	Total Inventories (A: Jan. 2022 ))	/	count )	/	Revenue (A: Jan. 2022 )
=	( (15.141	+	21.745)	/	2 )	/	72.889
=	18.443					/	72.889
=	0.25

DAVIDsTEA's Inventory-to-Revenue for the quarter that ended in Oct. 2022 is calculated as

	Inventory-to-Revenue (Q: Oct. 2022 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (Q: Jul. 2022 )	+	Total Inventories (Q: Oct. 2022 ))	/	count )	/	Revenue (Q: Oct. 2022 )
=	( (22.975	+	22.233)	/	2 )	/	11.994
=	22.604					/	11.994
=	1.88

DAVIDsTEA (FRA:DAT) 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:

More Related Terms:

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

DAVIDsTEA's Days Inventory for the three months ended in Oct. 2022 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Oct. 2022 )	/	Cost of Goods Sold (Q: Oct. 2022 )	*	Days in Period
	=	22.604	/	7.336	*	365 / 4
	=	281.16

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

DAVIDsTEA's Inventory Turnover for the quarter that ended in Oct. 2022 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Oct. 2022 )	/	Average Total Inventories (Q: Oct. 2022 )
	=	7.336	/	22.604
	=	0.32

DAVIDsTEA Inventory-to-Revenue Related Terms

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DAVIDsTEA (FRA:DAT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » DAVIDsTEA Inc (FRA:DAT) » Definitions » Inventory-to-Revenue

Comparable Companies

Traded in Other Exchanges

N/A

Address

5430 Ferrier Street, Mount-Royal, QC, CAN, H4P 1M2

Website

https://www.davidstea.com

DAVIDsTEA Inc is a company functional in Canada's packaged foods market. Operating as a branded retailer of different types of tea, the company serves through DAVIDsTEA stores and its website, davidstea.com. Its business involves the sale of three main products; Tea, Tea Accessories and Food and Beverages. Tea products such as loose-leaf teas, pre-packaged teas, and tea sachets account for the majority of the company's sales. The Company has two operating segments, Canada, and the U.S; that derive their revenues from various distribution channels including online, retail and wholesale. The Company derives revenue from Tea, Tea accessories and Food and beverages products. Majority revenue is derived from Tea products.