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Formosa Epitaxyorporation (TPE:3061) Inventory-to-Revenue : 0.99 (As of Sep. 2014)


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What is Formosa Epitaxyorporation 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. Formosa Epitaxyorporation's Average Total Inventories for the quarter that ended in Sep. 2014 was NT$1,418 Mil. Formosa Epitaxyorporation's Revenue for the three months ended in Sep. 2014 was NT$1,436 Mil. Formosa Epitaxyorporation's Inventory-to-Revenue for the quarter that ended in Sep. 2014 was 0.99.

Formosa Epitaxyorporation's Inventory-to-Revenue for the quarter that ended in Sep. 2014 declined from Jun. 2014 (1.09) to Jun. 2014 (0.99)

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. Formosa Epitaxyorporation's Days Inventory for the three months ended in Sep. 2014 was 72.04.

Inventory Turnover measures how fast the company turns over its inventory within a year. Formosa Epitaxyorporation's Inventory Turnover for the quarter that ended in Sep. 2014 was 1.27.


Formosa Epitaxyorporation Inventory-to-Revenue Historical Data

The historical data trend for Formosa Epitaxyorporation'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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Formosa Epitaxyorporation Inventory-to-Revenue Chart

Formosa Epitaxyorporation Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13
Inventory-to-Revenue
0.12 0.11 0.22 0.22 0.29

Formosa Epitaxyorporation Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14
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 1.09 1.62 1.61 1.09 0.99

Competitive Comparison of Formosa Epitaxyorporation's Inventory-to-Revenue

For the Semiconductors subindustry, Formosa Epitaxyorporation'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.


Formosa Epitaxyorporation's Inventory-to-Revenue Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Formosa Epitaxyorporation's Inventory-to-Revenue distribution charts can be found below:

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



Formosa Epitaxyorporation 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.

Formosa Epitaxyorporation's Inventory-to-Revenue for the fiscal year that ended in Dec. 2013 is calculated as

Inventory-to-Revenue (A: Dec. 2013 )
=Average Total Inventories / Revenue
=( (Total Inventories (A: Dec. 2012 ) + Total Inventories (A: Dec. 2013 )) / count ) / Revenue (A: Dec. 2013 )
=( (1035.627 + 1483.604) / 2 ) / 4367.557
=1259.6155 / 4367.557
=0.29

Formosa Epitaxyorporation's Inventory-to-Revenue for the quarter that ended in Sep. 2014 is calculated as

Inventory-to-Revenue (Q: Sep. 2014 )
=Average Total Inventories / Revenue
=( (Total Inventories (Q: Jun. 2014 ) + Total Inventories (Q: Sep. 2014 )) / count ) / Revenue (Q: Sep. 2014 )
=( (1527.819 + 1309.049) / 2 ) / 1435.795
=1418.434 / 1435.795
=0.99

* 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.


Formosa Epitaxyorporation  (TPE:3061) 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.

Formosa Epitaxyorporation's Days Inventory for the three months ended in Sep. 2014 is calculated as:

Days Inventory=Average Total Inventories (Q: Sep. 2014 )/Cost of Goods Sold (Q: Sep. 2014 )*Days in Period
=1418.434/1796.745*365 / 4
=72.04

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

Formosa Epitaxyorporation's Inventory Turnover for the quarter that ended in Sep. 2014 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Sep. 2014 ) / Average Total Inventories (Q: Sep. 2014 )
=1796.745 / 1418.434
=1.27

* 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.


Formosa Epitaxyorporation Inventory-to-Revenue Related Terms

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Formosa Epitaxyorporation (TPE:3061) Business Description

Traded in Other Exchanges
N/A
Address
Formosa Epitaxy Incorporation manufactures & distributes indium gallium nitride wafers & chips. Its products include InGaN wafers, green InGaN wafers & ultraviolet InGaN wafers which are used in display panels, automobile parts & other applications.

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