HiWave Technologies (LSE:HIW) Inventory-to-Revenue : 0.41 (As of Sep. 2012)

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What is HiWave Technologies 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. HiWave Technologies's Average Total Inventories for the quarter that ended in Sep. 2012 was £0.26 Mil. HiWave Technologies's Revenue for the six months ended in Sep. 2012 was £0.63 Mil. HiWave Technologies's Inventory-to-Revenue for the quarter that ended in Sep. 2012 was 0.41.

HiWave Technologies's Inventory-to-Revenue for the quarter that ended in Sep. 2012 declined from Mar. 2012 (0.46) to Mar. 2012 (0.41)

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. HiWave Technologies's Days Inventory for the six months ended in Sep. 2012 was 189.86.

Inventory Turnover measures how fast the company turns over its inventory within a year. HiWave Technologies's Inventory Turnover for the quarter that ended in Sep. 2012 was 0.96.

HiWave Technologies Inventory-to-Revenue Historical Data

The historical data trend for HiWave Technologies'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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HiWave Technologies Inventory-to-Revenue Chart

HiWave Technologies Annual Data

Trend

Jun03

Jun04

Jun05

Jun06

Jun07

Jun08

Jun09

Jun10

Sep11

Sep12

Inventory-to-Revenue

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0.13

0.20

HiWave Technologies Semi-Annual Data
	Dec02	Jun03	Dec03	Jun04	Dec04	Jun05	Dec05	Jun06	Dec06	Jun07	Dec07	Jun08	Dec08	Jun09	Dec09	Jun10	Dec10	Jun11	Mar12	Sep12
Inventory-to-Revenue	Get a 7-Day Free Trial															-	0.14	0.27	0.46	0.41

Competitive Comparison of HiWave Technologies's Inventory-to-Revenue

For the Electronic Components subindustry, HiWave Technologies'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.

HiWave Technologies's Inventory-to-Revenue Distribution in the Hardware Industry

For the Hardware industry and Technology sector, HiWave Technologies's Inventory-to-Revenue distribution charts can be found below:

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

HiWave Technologies Inventory-to-Revenue Calculation

HiWave Technologies's Inventory-to-Revenue for the fiscal year that ended in Sep. 2012 is calculated as

	Inventory-to-Revenue (A: Sep. 2012 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (A: Sep. 2011 )	+	Total Inventories (A: Sep. 2012 ))	/	count )	/	Revenue (A: Sep. 2012 )
=	( (0.267	+	0.224)	/	2 )	/	1.225
=	0.2455					/	1.225
=	0.20

HiWave Technologies's Inventory-to-Revenue for the quarter that ended in Sep. 2012 is calculated as

	Inventory-to-Revenue (Q: Sep. 2012 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (Q: Mar. 2012 )	+	Total Inventories (Q: Sep. 2012 ))	/	count )	/	Revenue (Q: Sep. 2012 )
=	( (0.292	+	0.224)	/	2 )	/	0.631
=	0.258					/	0.631
=	0.41

HiWave Technologies (LSE:HIW) 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.

HiWave Technologies's Days Inventory for the six months ended in Sep. 2012 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2012 )	/	Cost of Goods Sold (Q: Sep. 2012 )	*	Days in Period
	=	0.258	/	0.248	*	365 / 2
	=	189.86

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

HiWave Technologies's Inventory Turnover for the quarter that ended in Sep. 2012 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Sep. 2012 )	/	Average Total Inventories (Q: Sep. 2012 )
	=	0.248	/	0.258
	=	0.96

HiWave Technologies Inventory-to-Revenue Related Terms

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