Profound Medical (TSX:PRN) Inventory-to-Revenue : 3.60 (As of Dec. 2023)

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What is Profound Medical 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. Profound Medical's Average Total Inventories for the quarter that ended in Dec. 2023 was C$9.71 Mil. Profound Medical's Revenue for the three months ended in Dec. 2023 was C$2.70 Mil. Profound Medical's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 3.60.

Profound Medical's Inventory-to-Revenue for the quarter that ended in Dec. 2023 declined from Sep. 2023 (4.44) to Sep. 2023 (3.60)

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. Profound Medical's Days Inventory for the three months ended in Dec. 2023 was 695.58.

Inventory Turnover measures how fast the company turns over its inventory within a year. Profound Medical's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.13.

Profound Medical Inventory-to-Revenue Historical Data

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

Profound Medical Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory-to-Revenue

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0.77

0.62

0.93

1.12

1.04

Profound Medical Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory-to-Revenue	Get a 7-Day Free Trial															6.06	4.30	5.13	4.44	3.60

Competitive Comparison of Profound Medical's Inventory-to-Revenue

For the Medical Devices subindustry, Profound Medical'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.

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

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

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

Profound Medical Inventory-to-Revenue Calculation

Profound Medical's Inventory-to-Revenue for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory-to-Revenue (A: Dec. 2023 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )	/	Revenue (A: Dec. 2023 )
=	( (10.788	+	9.376)	/	2 )	/	9.658
=	10.082					/	9.658
=	1.04

Profound Medical's Inventory-to-Revenue for the quarter that ended in Dec. 2023 is calculated as

	Inventory-to-Revenue (Q: Dec. 2023 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )	/	Revenue (Q: Dec. 2023 )
=	( (10.047	+	9.376)	/	2 )	/	2.695
=	9.7115					/	2.695
=	3.60

Profound Medical (TSX:PRN) 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.

Profound Medical's Days Inventory for the three months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	9.7115	/	1.274	*	365 / 4
	=	695.58

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

Profound Medical's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Dec. 2023 )	/	Average Total Inventories (Q: Dec. 2023 )
	=	1.274	/	9.7115
	=	0.13

Profound Medical Inventory-to-Revenue Related Terms

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Profound Medical (TSX:PRN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Profound Medical Corp (TSX:PRN) » Definitions » Inventory-to-Revenue

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PROF:USA

Address

2400 Skymark Avenue, Unit 6, Mississauga, ON, CAN, L4W 5K5

Website

https://www.profoundmedical.com

Profound Medical Corp is a commercial-stage medical device company focused on the development and marketing of customizable, incision-free therapeutic systems for the image-guided ablation of diseased tissue utilizing its platform technologies and leveraging the healthcare system's existing imaging infrastructure. The company's product TULSA-PRO system combines real-time MRI, robotically driven transurethral sweeping-action thermal ultrasound with closed-loop temperature feedback control for the ablation of prostate tissue. The product is comprised of one-time-use devices and durable equipment that are used in conjunction with a customer's existing MRI scanner.