Agrium (TSX:AGU) Inventory-to-Revenue : 1.21 (As of Sep. 2017)

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What is Agrium 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. Agrium's Average Total Inventories for the quarter that ended in Sep. 2017 was C$3,523 Mil. Agrium's Revenue for the three months ended in Sep. 2017 was C$2,925 Mil. Agrium's Inventory-to-Revenue for the quarter that ended in Sep. 2017 was 1.21.

Agrium's Inventory-to-Revenue for the quarter that ended in Sep. 2017 increased from Jun. 2017 (0.59) to Jun. 2017 (1.21)

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. Agrium's Days Inventory for the three months ended in Sep. 2017 was 143.46.

Inventory Turnover measures how fast the company turns over its inventory within a year. Agrium's Inventory Turnover for the quarter that ended in Sep. 2017 was 0.64.

Agrium Inventory-to-Revenue Historical Data

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

Agrium Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Inventory-to-Revenue

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0.19

0.20

0.21

0.24

Agrium Quarterly Data
	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17
Inventory-to-Revenue	Get a 7-Day Free Trial															1.19	1.20	1.43	0.59	1.21

Competitive Comparison of Agrium's Inventory-to-Revenue

For the Agricultural Inputs subindustry, Agrium'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.

Agrium's Inventory-to-Revenue Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Agrium's Inventory-to-Revenue distribution charts can be found below:

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

Agrium Inventory-to-Revenue Calculation

Agrium'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 )
=	( (4544.488	+	4308.497)	/	2 )	/	18227.744
=	4426.4925					/	18227.744
=	0.24

Agrium's Inventory-to-Revenue for the quarter that ended in Sep. 2017 is calculated as

	Inventory-to-Revenue (Q: Sep. 2017 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (Q: Jun. 2017 )	+	Total Inventories (Q: Sep. 2017 ))	/	count )	/	Revenue (Q: Sep. 2017 )
=	( (3783.757	+	3262.53)	/	2 )	/	2924.858
=	3523.1435					/	2924.858
=	1.20

Agrium (TSX:AGU) 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.

Agrium's Days Inventory for the three months ended in Sep. 2017 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2017 )	/	Cost of Goods Sold (Q: Sep. 2017 )	*	Days in Period
	=	3523.1435	/	2240.918	*	365 / 4
	=	143.46

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

Agrium's Inventory Turnover for the quarter that ended in Sep. 2017 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Sep. 2017 )	/	Average Total Inventories (Q: Sep. 2017 )
	=	2240.918	/	3523.1435
	=	0.64

Agrium Inventory-to-Revenue Related Terms

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Agrium (TSX:AGU) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Agriculture » Agrium Inc (TSX:AGU) » Definitions » Inventory-to-Revenue

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.agrium.com

With more than 1,400 retail centers, Canada-based Agrium is the largest agricultural retailer in the United States, selling fertilizers, crop chemicals, and seed directly to farm customers. The company's wholesale business produces and markets the three main crop nutrients--nitrogen, potash, and phosphate--with natural resources located mainly in Canada and the United States. The bulk of Agrium's sales are generated in the U.S., Canada, and Australia.