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DSM Firmenich AG (HAM:ZX6) Inventory-to-Revenue : 0.58 (As of Dec. 2023)


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What is DSM Firmenich AG 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. DSM Firmenich AG's Average Total Inventories for the quarter that ended in Dec. 2023 was €3,577 Mil. DSM Firmenich AG's Revenue for the six months ended in Dec. 2023 was €6,157 Mil. DSM Firmenich AG's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.58.

DSM Firmenich AG's Inventory-to-Revenue for the quarter that ended in Dec. 2023 declined from Jun. 2023 (0.68) to Jun. 2023 (0.58)

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. DSM Firmenich AG's Days Inventory for the six months ended in Dec. 2023 was 131.77.

Inventory Turnover measures how fast the company turns over its inventory within a year. DSM Firmenich AG's Inventory Turnover for the quarter that ended in Dec. 2023 was 1.38.


DSM Firmenich AG Inventory-to-Revenue Historical Data

The historical data trend for DSM Firmenich AG'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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DSM Firmenich AG Inventory-to-Revenue Chart

DSM Firmenich AG Annual Data
Trend Dec21 Dec22 Dec23
Inventory-to-Revenue
- 0.28 0.27

DSM Firmenich AG Semi-Annual Data
Dec21 Jun22 Dec22 Jun23 Dec23
Inventory-to-Revenue - 0.88 0.70 0.68 0.58

Competitive Comparison of DSM Firmenich AG's Inventory-to-Revenue

For the Household & Personal Products subindustry, DSM Firmenich AG'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.


DSM Firmenich AG's Inventory-to-Revenue Distribution in the Consumer Packaged Goods Industry

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

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



DSM Firmenich AG 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.

DSM Firmenich AG's Inventory-to-Revenue for the fiscal year that ended in Dec. 2023 is calculated as

Inventory-to-Revenue (A: Dec. 2023 )
=Average Total Inventories / Revenue
=( (Total Inventories (A: Dec. 2022 ) + Total Inventories (A: Dec. 2023 )) / count ) / Revenue (A: Dec. 2023 )
=( (2339 + 3390) / 2 ) / 10627
=2864.5 / 10627
=0.27

DSM Firmenich AG's Inventory-to-Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue (Q: Dec. 2023 )
=Average Total Inventories / Revenue
=( (Total Inventories (Q: Jun. 2023 ) + Total Inventories (Q: Dec. 2023 )) / count ) / Revenue (Q: Dec. 2023 )
=( (3764 + 3390) / 2 ) / 6157
=3577 / 6157
=0.58

* 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.


DSM Firmenich AG  (HAM:ZX6) 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.

DSM Firmenich AG's Days Inventory for the six months ended in Dec. 2023 is calculated as:

Days Inventory=Average Total Inventories (Q: Dec. 2023 )/Cost of Goods Sold (Q: Dec. 2023 )*Days in Period
=3577/4954*365 / 2
=131.77

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

DSM Firmenich AG's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Dec. 2023 ) / Average Total Inventories (Q: Dec. 2023 )
=4954 / 3577
=1.38

* 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.


DSM Firmenich AG Inventory-to-Revenue Related Terms

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DSM Firmenich AG (HAM:ZX6) Business Description

Comparable Companies
Address
Wurmisweg 576, Kaiseraugst, CHE, 4303
DSM-Firmenich is a global science-based company formed in 2023 through the merger of DSM, a Dutch nutrition, health, and sustainable living player, and Switzerland-based Firmenich, the third-largest player in the flavor and fragrance market. The company serves a wide range of end-consumer markets providing nutrition solutions ranging from animal feed to medical and early-life nutrition, fragrances for personal-, home-, and laundry-care brands, prestige perfumes, and other ingredients for food and beverage, home, and personal care. DSM-Firmenich has nearly 30,000 employees, with more than 2,000 scientists and engineers spread across 15 research and development facilities.

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