GURUFOCUS.COM » STOCK LIST » Basic Materials » Forest Products » Western Forest Products Inc (TSX:WEF) » Definitions » Inventory-to-Revenue

Western Forest Products (TSX:WEF) Inventory-to-Revenue : 0.85 (As of Dec. 2023)


View and export this data going back to 2004. Start your Free Trial

What is Western Forest Products 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. Western Forest Products's Average Total Inventories for the quarter that ended in Dec. 2023 was C$211 Mil. Western Forest Products's Revenue for the three months ended in Dec. 2023 was C$247 Mil. Western Forest Products's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.85.

Western Forest Products's Inventory-to-Revenue for the quarter that ended in Dec. 2023 declined from Sep. 2023 (0.94) to Sep. 2023 (0.85)

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. Western Forest Products's Days Inventory for the three months ended in Dec. 2023 was 88.15.

Inventory Turnover measures how fast the company turns over its inventory within a year. Western Forest Products's Inventory Turnover for the quarter that ended in Dec. 2023 was 1.04.


Western Forest Products Inventory-to-Revenue Historical Data

The historical data trend for Western Forest Products'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.

Western Forest Products Inventory-to-Revenue Chart

Western Forest Products Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Inventory-to-Revenue
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.19 0.16 0.14 0.15 0.22

Western Forest Products 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 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 0.84 0.86 0.82 0.94 0.85

Competitive Comparison of Western Forest Products's Inventory-to-Revenue

For the Lumber & Wood Production subindustry, Western Forest Products'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.


Western Forest Products's Inventory-to-Revenue Distribution in the Forest Products Industry

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

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



Western Forest Products 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.

Western Forest Products'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 )
=( (224.8 + 213.5) / 2 ) / 1017.5
=219.15 / 1017.5
=0.22

Western Forest Products'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 )
=( (207.7 + 213.5) / 2 ) / 246.6
=210.6 / 246.6
=0.85

* 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.


Western Forest Products  (TSX:WEF) 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.

Western Forest Products'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
=210.6/218*365 / 4
=88.15

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

Western Forest Products'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 )
=218 / 210.6
=1.04

* 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.


Western Forest Products Inventory-to-Revenue Related Terms

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


Western Forest Products (TSX:WEF) Business Description

Traded in Other Exchanges
Address
1055 West Georgia Street, Suite 800, P.O. Box 11122, Royal Centre Building, Vancouver, BC, CAN, V6E 3P3
Western Forest Products Inc is a Canada-based softwood forest products company. The company's principal business activities include timber harvesting, reforestation, forest management, sawmilling logs into lumber and wood chips, and value-added lumber remanufacturing. Its operating business segment comprises Timber harvesting, Log sales, and Lumber manufacturing and sales. The firm purchases and harvests logs which are then manufactured into lumber products at its sawmills, or sold. Canada and the United States, represent the company's large markets and contribute the vast majority of its total revenue.

Western Forest Products (TSX:WEF) Headlines

No Headlines