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Lonrho (LSE:LONR) Inventory-to-Revenue : 0.27 (As of Dec. 2012)


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What is Lonrho 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. Lonrho's Average Total Inventories for the quarter that ended in Dec. 2012 was £22.3 Mil. Lonrho's Revenue for the six months ended in Dec. 2012 was £83.6 Mil. Lonrho's Inventory-to-Revenue for the quarter that ended in Dec. 2012 was 0.27.

Lonrho's Inventory-to-Revenue for the quarter that ended in Dec. 2012 increased from Jun. 2012 (0.14) to Jun. 2012 (0.27)

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. Lonrho's Days Inventory for the six months ended in Dec. 2012 was 73.33.

Inventory Turnover measures how fast the company turns over its inventory within a year. Lonrho's Inventory Turnover for the quarter that ended in Dec. 2012 was 2.49.


Lonrho Inventory-to-Revenue Historical Data

The historical data trend for Lonrho'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.

Lonrho Inventory-to-Revenue Chart

Lonrho Annual Data
Trend Sep03 Sep04 Sep05 Sep06 Sep07 Sep08 Sep09 Sep10 Sep11 Dec12
Inventory-to-Revenue
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.07 0.03 0.04 0.03 0.11

Lonrho Semi-Annual Data
Mar02 Sep02 Mar03 Sep03 Mar05 Sep05 Mar06 Sep06 Mar07 Sep07 Mar08 Sep08 Mar09 Sep09 Mar10 Sep10 Mar11 Sep11 Jun12 Dec12
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 0.08 0.10 0.11 0.14 0.27

Competitive Comparison of Lonrho's Inventory-to-Revenue

For the Conglomerates subindustry, Lonrho'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.


Lonrho's Inventory-to-Revenue Distribution in the Conglomerates Industry

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

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



Lonrho 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.

Lonrho's Inventory-to-Revenue for the fiscal year that ended in Dec. 2012 is calculated as

Inventory-to-Revenue (A: Dec. 2012 )
=Average Total Inventories / Revenue
=( (Total Inventories (A: Sep. 2011 ) + Total Inventories (A: Dec. 2012 )) / count ) / Revenue (A: Dec. 2012 )
=( (0 + 23.1) / 1 ) / 206.5
=23.1 / 206.5
=0.11

Lonrho's Inventory-to-Revenue for the quarter that ended in Dec. 2012 is calculated as

Inventory-to-Revenue (Q: Dec. 2012 )
=Average Total Inventories / Revenue
=( (Total Inventories (Q: Jun. 2012 ) + Total Inventories (Q: Dec. 2012 )) / count ) / Revenue (Q: Dec. 2012 )
=( (21.5 + 23.1) / 2 ) / 83.6
=22.3 / 83.6
=0.27

* 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.


Lonrho  (LSE:LONR) 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.

Lonrho's Days Inventory for the six months ended in Dec. 2012 is calculated as:

Days Inventory=Average Total Inventories (Q: Dec. 2012 )/Cost of Goods Sold (Q: Dec. 2012 )*Days in Period
=22.3/55.5*365 / 2
=73.33

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

Lonrho's Inventory Turnover for the quarter that ended in Dec. 2012 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Dec. 2012 ) / Average Total Inventories (Q: Dec. 2012 )
=55.5 / 22.3
=2.49

* 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.


Lonrho Inventory-to-Revenue Related Terms

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Lonrho (LSE:LONR) Business Description

Traded in Other Exchanges
N/A
Address
Level 2, 25 Berkeley Square, London, GBR, W1J 6HB
Lonrho PLC is engaged in providing the infrastructure and services required for the growing oil, mineral and agricultural sectors in Africa. The Company has a diverse portfolio of investments across Sub-Saharan Africa in four core operating sectors: Agribusiness, Infrastructure, Hotels and Support Services. Agribusiness vertically integrates the production, sourcing, logistics, processing and distribution of agricultural products from Sub-Saharan Africa to the consumer. The division supplies to its retailers in Sub-Saharan Africa, Europe, the USA, Middle East, Scandinavia and the Far East. The division also distributes agricultural and heavy machinery. Infrastructure division develops and manages oil logistics terminals. Luba Freeport, the oil service terminal in the Gulf of Guinea, has attracted oil service companies to be long term tenants at the port to service offshore exploration and production rigs. The Company's Hotel division includes hotels centred on the commercial, conference and business related markets across the Continent. It owns or manages hotels in Lubumbashi and Kinshasa in the Democratic Republic of the Congo, Maputo in Mozambique, Gaborone in Botswana and Mutare in Zimbabwe. IT business is a full systems integrator and manager that designs, builds, develops and integrates IT solutions for large corporate clients, banks and governments and then undertakes management contracts to run and manage installations. The IT division is a distributor for Cisco, Microsoft, Dell and Hewlett Packard systems and equipment.

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