Sphere Medical Holding (LSE:SPHR) Inventory-to-Revenue : 17.92 (As of Dec. 2016)

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What is Sphere Medical Holding 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. Sphere Medical Holding's Average Total Inventories for the quarter that ended in Dec. 2016 was £0.43 Mil. Sphere Medical Holding's Revenue for the six months ended in Dec. 2016 was £0.02 Mil. Sphere Medical Holding's Inventory-to-Revenue for the quarter that ended in Dec. 2016 was 17.92.

Sphere Medical Holding's Inventory-to-Revenue for the quarter that ended in Dec. 2016 declined from Jun. 2016 (68.08) to Jun. 2016 (17.92)

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. Sphere Medical Holding's Days Inventory for the six months ended in Dec. 2016 was 4,616.18.

Inventory Turnover measures how fast the company turns over its inventory within a year. Sphere Medical Holding's Inventory Turnover for the quarter that ended in Dec. 2016 was 0.04.

Sphere Medical Holding Inventory-to-Revenue Historical Data

The historical data trend for Sphere Medical Holding'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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Sphere Medical Holding Inventory-to-Revenue Chart

Sphere Medical Holding Annual Data

Trend

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Inventory-to-Revenue

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0.91

1.33

9.00

19.97

13.52

Sphere Medical Holding Semi-Annual Data
	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16
Inventory-to-Revenue	Get a 7-Day Free Trial						32.50	24.50	65.90	68.08	17.92

Competitive Comparison of Sphere Medical Holding's Inventory-to-Revenue

For the Medical Devices subindustry, Sphere Medical Holding'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.

Sphere Medical Holding's Inventory-to-Revenue Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Sphere Medical Holding's Inventory-to-Revenue distribution charts can be found below:

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

Sphere Medical Holding Inventory-to-Revenue Calculation

Sphere Medical Holding's Inventory-to-Revenue for the fiscal year that ended in Dec. 2016 is calculated as

	Inventory-to-Revenue (A: Dec. 2016 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (A: Dec. 2015 )	+	Total Inventories (A: Dec. 2016 ))	/	count )	/	Revenue (A: Dec. 2016 )
=	( (0.384	+	0.427)	/	2 )	/	0.03
=	0.4055					/	0.03
=	13.52

Sphere Medical Holding's Inventory-to-Revenue for the quarter that ended in Dec. 2016 is calculated as

	Inventory-to-Revenue (Q: Dec. 2016 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (Q: Jun. 2016 )	+	Total Inventories (Q: Dec. 2016 ))	/	count )	/	Revenue (Q: Dec. 2016 )
=	( (0.433	+	0.427)	/	2 )	/	0.024
=	0.43					/	0.024
=	17.92

Sphere Medical Holding (LSE:SPHR) 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.

Sphere Medical Holding's Days Inventory for the six months ended in Dec. 2016 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2016 )	/	Cost of Goods Sold (Q: Dec. 2016 )	*	Days in Period
	=	0.43	/	0.017	*	365 / 2
	=	4,616.18

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

Sphere Medical Holding's Inventory Turnover for the quarter that ended in Dec. 2016 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Dec. 2016 )	/	Average Total Inventories (Q: Dec. 2016 )
	=	0.017	/	0.43
	=	0.04

Sphere Medical Holding Inventory-to-Revenue Related Terms

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Sphere Medical Holding (LSE:SPHR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Sphere Medical Holding PLC (LSE:SPHR) » Definitions » Inventory-to-Revenue

Comparable Companies

Traded in Other Exchanges

N/A

Address

Harston Mill, Harston, Cambridge, GBR, CB22 7GG

Website

http://www.spheremedical.com

Sphere Medical Holding Ltd is a UK-based company which is engaged in research and development, manufacturing and sale of medical monitoring and diagnostic equipment within the medical device area. It focuses on developing the Proxima platform for measuring blood gases, electrolytes and metabolites. Proxima is an in-line patient dedicated arterial blood analyser which supports frequent measurements at critical times. It markets its product (Proxima) to critical care market which includes ICU (Intensive Care Unit) and OR (Operating Room). The company's products are used in medical applications, enabling faster clinical decision-making and improved patient outcomes. It operates is business in single reporting segment of Medical devices. Most of the company's revenue comes from Europe.