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Invensys (FRA:SBPD) Inventory-to-Revenue : 0.13 (As of Sep. 2013)


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What is Invensys 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. Invensys's Average Total Inventories for the quarter that ended in Sep. 2013 was €131 Mil. Invensys's Revenue for the six months ended in Sep. 2013 was €1,023 Mil. Invensys's Inventory-to-Revenue for the quarter that ended in Sep. 2013 was 0.13.

Invensys's Inventory-to-Revenue for the quarter that ended in Sep. 2013 declined from Mar. 2013 (0.15) to Mar. 2013 (0.13)

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. Invensys's Days Inventory for the six months ended in Sep. 2013 was 36.41.

Inventory Turnover measures how fast the company turns over its inventory within a year. Invensys's Inventory Turnover for the quarter that ended in Sep. 2013 was 5.01.


Invensys Inventory-to-Revenue Historical Data

The historical data trend for Invensys'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.

Invensys Inventory-to-Revenue Chart

Invensys Annual Data
Trend Mar04 Mar05 Mar06 Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13
Inventory-to-Revenue
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.07 0.07 0.06 0.08 0.07

Invensys Semi-Annual Data
Mar03 Sep04 Mar05 Sep05 Mar06 Sep06 Mar07 Sep07 Mar08 Sep08 Mar09 Sep09 Mar10 Sep10 Mar11 Sep11 Mar12 Sep12 Mar13 Sep13
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 0.13 0.29 0.17 0.15 0.13

Competitive Comparison of Invensys's Inventory-to-Revenue

For the Specialty Industrial Machinery subindustry, Invensys'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.


Invensys's Inventory-to-Revenue Distribution in the Industrial Products Industry

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

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



Invensys 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.

Invensys's Inventory-to-Revenue for the fiscal year that ended in Mar. 2013 is calculated as

Inventory-to-Revenue (A: Mar. 2013 )
=Average Total Inventories / Revenue
=( (Total Inventories (A: Mar. 2012 ) + Total Inventories (A: Mar. 2013 )) / count ) / Revenue (A: Mar. 2013 )
=( (173.679 + 129.249) / 2 ) / 2086.612
=151.464 / 2086.612
=0.07

Invensys's Inventory-to-Revenue for the quarter that ended in Sep. 2013 is calculated as

Inventory-to-Revenue (Q: Sep. 2013 )
=Average Total Inventories / Revenue
=( (Total Inventories (Q: Mar. 2013 ) + Total Inventories (Q: Sep. 2013 )) / count ) / Revenue (Q: Sep. 2013 )
=( (129.249 + 131.79) / 2 ) / 1023.454
=130.5195 / 1023.454
=0.13

* 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.


Invensys  (FRA:SBPD) 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.

Invensys's Days Inventory for the six months ended in Sep. 2013 is calculated as:

Days Inventory=Average Total Inventories (Q: Sep. 2013 )/Cost of Goods Sold (Q: Sep. 2013 )*Days in Period
=130.5195/654.203*365 / 2
=36.41

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

Invensys's Inventory Turnover for the quarter that ended in Sep. 2013 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Sep. 2013 ) / Average Total Inventories (Q: Sep. 2013 )
=654.203 / 130.5195
=5.01

* 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.


Invensys Inventory-to-Revenue Related Terms

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


Invensys (FRA:SBPD) Business Description

Traded in Other Exchanges
N/A
Address
Invensys PLC is a technology company that works in partnership with industrial and commercial customers to design and supply advanced technologies that optimise operational performance and profitability. The Company is grouped into four new business segments - Software, Industrial Automation, Energy Controls and Appliance. The Company's divisions include; Invensys Operations Management which is a technology, software and consulting business that creates and applies technologies to enable the safe and efficient operation of industrial and commercial operations such as oil refineries, fossil fuel and nuclear power plants, petrochemical works and other manufacturing sites. Invensys Controls designs, engineers and manufactures products, components, systems and services used in appliances, heating, air conditioning/cooling and refrigeration products across a range of industries in residential and commercial markets. The Software segment consists of the software businesses previously within Invensys Operations Management and includes Wonderware, SimSciTM and Avantis brands. Industrial Automation segment consists of the systems businesses of our Foxboro distributed control systems (DCS) and Triconex safety systems with the addition of the Foxboro measurement and instrumentation products previously within the equipment business of Invensys Operations Management. Energy Controls segment consists of the Eurotherm and IMServ businesses previously included within the equipment business of Invensys Operations Management, together with the residential heating and commercial businesses that were formerly part of Invensys Controls. Appliance segment consists of the Appliance controls line of business previously within Invensys Controls, together with the appliance replacement parts business formerly within Wholesale, also part of the former Invensys Controls.

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