Shire (SHPGF) Inventory-to-Revenue : 0.88 (As of Sep. 2018)

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What is Shire 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. Shire's Average Total Inventories for the quarter that ended in Sep. 2018 was $3,406 Mil. Shire's Revenue for the three months ended in Sep. 2018 was $3,872 Mil. Shire's Inventory-to-Revenue for the quarter that ended in Sep. 2018 was 0.88.

Shire's Inventory-to-Revenue for the quarter that ended in Sep. 2018 increased from Jun. 2018 (0.85) to Jun. 2018 (0.88)

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. Shire's Days Inventory for the three months ended in Sep. 2018 was 268.48.

Inventory Turnover measures how fast the company turns over its inventory within a year. Shire's Inventory Turnover for the quarter that ended in Sep. 2018 was 0.34.

Shire Inventory-to-Revenue Historical Data

The historical data trend for Shire'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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Shire Inventory-to-Revenue Chart

Shire Annual Data

Trend

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Inventory-to-Revenue

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0.09

0.08

0.09

0.18

0.23

Shire Quarterly Data
	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18
Inventory-to-Revenue	Get a 7-Day Free Trial															0.91	0.81	0.88	0.85	0.88

Competitive Comparison of Shire's Inventory-to-Revenue

For the Biotechnology subindustry, Shire'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.

Shire's Inventory-to-Revenue Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Shire's Inventory-to-Revenue distribution charts can be found below:

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

Shire Inventory-to-Revenue Calculation

Shire's Inventory-to-Revenue for the fiscal year that ended in Dec. 2017 is calculated as

	Inventory-to-Revenue (A: Dec. 2017 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (A: Dec. 2016 )	+	Total Inventories (A: Dec. 2017 ))	/	count )	/	Revenue (A: Dec. 2017 )
=	( (3562.3	+	3291.5)	/	2 )	/	15160.6
=	3426.9					/	15160.6
=	0.23

Shire's Inventory-to-Revenue for the quarter that ended in Sep. 2018 is calculated as

	Inventory-to-Revenue (Q: Sep. 2018 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (Q: Jun. 2018 )	+	Total Inventories (Q: Sep. 2018 ))	/	count )	/	Revenue (Q: Sep. 2018 )
=	( (3353.3	+	3458.7)	/	2 )	/	3871.7
=	3406					/	3871.7
=	0.88

Shire (OTCPK:SHPGF) Inventory-to-Revenue Explanation

An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:

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.

Shire's Days Inventory for the three months ended in Sep. 2018 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2018 )	/	Cost of Goods Sold (Q: Sep. 2018 )	*	Days in Period
	=	3406	/	1157.6	*	365 / 4
	=	268.48

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

Shire's Inventory Turnover for the quarter that ended in Sep. 2018 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Sep. 2018 )	/	Average Total Inventories (Q: Sep. 2018 )
	=	1157.6	/	3406
	=	0.34

Shire Inventory-to-Revenue Related Terms

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Shire (SHPGF) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Shire PLC (OTCPK:SHPGF) » Definitions » Inventory-to-Revenue

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.shire.com

Shire is a diversified, Ireland-based specialty drug firm. Shire has grown primarily through mergers and acquisitions, including the Transkaryotic Therapies acquisition in 2005, which established its genetic disease business with Replagal and Elaprase, and the merger with New River in 2007, which brought full rights to neuroscience drug Vyvanse. Shire completed the acquisition of ViroPharma (genetic diseases) in 2014, NPS Pharma (internal medicine) in 2015, and Baxalta (hematology, immunology, and oncology) and Dyax (genetic diseases) in 2016.