GURUFOCUS.COM » STOCK LIST » Technology » Software » Ribbon Communications Inc (STU:NU42) » Definitions » Inventory-to-Revenue

Ribbon Communications (STU:NU42) Inventory-to-Revenue : 0.30 (As of Dec. 2024)


View and export this data going back to 2023. Start your Free Trial

What is Ribbon Communications 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. Ribbon Communications's Average Total Inventories for the quarter that ended in Dec. 2024 was €72.6 Mil. Ribbon Communications's Revenue for the three months ended in Dec. 2024 was €240.0 Mil. Ribbon Communications's Inventory-to-Revenue for the quarter that ended in Dec. 2024 was 0.30.

Ribbon Communications's Inventory-to-Revenue for the quarter that ended in Dec. 2024 declined from Sep. 2024 (0.38) to Sep. 2024 (0.30)

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. Ribbon Communications's Days Inventory for the three months ended in Dec. 2024 was 62.37.

Inventory Turnover measures how fast the company turns over its inventory within a year. Ribbon Communications's Inventory Turnover for the quarter that ended in Dec. 2024 was 1.46.


Ribbon Communications Inventory-to-Revenue Historical Data

The historical data trend for Ribbon Communications'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.

Ribbon Communications Inventory-to-Revenue Chart

Ribbon Communications Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Inventory-to-Revenue
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.04 0.06 0.08 0.09 0.09

Ribbon Communications Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 0.33 0.44 0.41 0.38 0.30

Competitive Comparison of Ribbon Communications's Inventory-to-Revenue

For the Software - Application subindustry, Ribbon Communications'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.


Ribbon Communications's Inventory-to-Revenue Distribution in the Software Industry

For the Software industry and Technology sector, Ribbon Communications's Inventory-to-Revenue distribution charts can be found below:

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


;
;

Ribbon Communications 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.

Ribbon Communications's Inventory-to-Revenue for the fiscal year that ended in Dec. 2024 is calculated as

Inventory-to-Revenue (A: Dec. 2024 )
=Average Total Inventories / Revenue
=( (Total Inventories (A: Dec. 2023 ) + Total Inventories (A: Dec. 2024 )) / count ) / Revenue (A: Dec. 2024 )
=( (71.087 + 75.616) / 2 ) / 796.356
=73.3515 / 796.356
=0.09

Ribbon Communications's Inventory-to-Revenue for the quarter that ended in Dec. 2024 is calculated as

Inventory-to-Revenue (Q: Dec. 2024 )
=Average Total Inventories / Revenue
=( (Total Inventories (Q: Sep. 2024 ) + Total Inventories (Q: Dec. 2024 )) / count ) / Revenue (Q: Dec. 2024 )
=( (69.662 + 75.616) / 2 ) / 240.048
=72.639 / 240.048
=0.30

* 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.


Ribbon Communications  (STU:NU42) 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.

Ribbon Communications's Days Inventory for the three months ended in Dec. 2024 is calculated as:

Days Inventory=Average Total Inventories (Q: Dec. 2024 )/Cost of Goods Sold (Q: Dec. 2024 )*Days in Period
=72.639/106.278*365 / 4
=62.37

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

Ribbon Communications's Inventory Turnover for the quarter that ended in Dec. 2024 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Dec. 2024 ) / Average Total Inventories (Q: Dec. 2024 )
=106.278 / 72.639
=1.46

* 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.


Ribbon Communications Inventory-to-Revenue Related Terms

Thank you for viewing the detailed overview of Ribbon Communications's Inventory-to-Revenue provided by GuruFocus.com. Please click on the following links to see related term pages.


Ribbon Communications Business Description

Traded in Other Exchanges
Address
6500 Chase Oaks Boulevard, Suite 100, Plano, TX, USA, 75023
Ribbon Communications Inc provides network solutions to service providers and enterprises. The company enables service providers and enterprises to modernize their communications networks and provide secure real-time communications solutions to their customers and employees. The company has two separate lines of business; the Cloud and Edge segment, and the IP Optical Networks segment. The majority of the revenue for the company is generated from its Cloud and Edge segment that provides secure and reliable software and hardware products, solutions, and services for VoIP communications, Voice Over LTE among others to service providers and enterprise customers. The company generates majority of its revenue from United States.

Ribbon Communications Headlines

No Headlines