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CNH Industrial NV (WBO:CNHI) Inventory-to-Revenue : 0.89 (As of Dec. 2023)


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What is CNH Industrial NV 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. CNH Industrial NV's Average Total Inventories for the quarter that ended in Dec. 2023 was €5,563 Mil. CNH Industrial NV's Revenue for the three months ended in Dec. 2023 was €6,228 Mil. CNH Industrial NV's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.89.

CNH Industrial NV's Inventory-to-Revenue for the quarter that ended in Dec. 2023 declined from Sep. 2023 (1.07) to Sep. 2023 (0.89)

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. CNH Industrial NV's Days Inventory for the three months ended in Dec. 2023 was 117.65.

Inventory Turnover measures how fast the company turns over its inventory within a year. CNH Industrial NV's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.78.


CNH Industrial NV Inventory-to-Revenue Historical Data

The historical data trend for CNH Industrial NV'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.

CNH Industrial NV Inventory-to-Revenue Chart

CNH Industrial NV 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 0.24 0.47 0.25 0.19 0.21

CNH Industrial NV 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 0.76 1.02 0.95 1.07 0.89

Competitive Comparison of CNH Industrial NV's Inventory-to-Revenue

For the Farm & Heavy Construction Machinery subindustry, CNH Industrial NV'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.


CNH Industrial NV's Inventory-to-Revenue Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, CNH Industrial NV's Inventory-to-Revenue distribution charts can be found below:

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



CNH Industrial NV 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.

CNH Industrial NV'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 )
=( (4541.584 + 5084.765) / 2 ) / 22637.979
=4813.1745 / 22637.979
=0.21

CNH Industrial NV'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 )
=( (6040.839 + 5084.765) / 2 ) / 6228.264
=5562.802 / 6228.264
=0.89

* 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.


CNH Industrial NV  (WBO:CNHI) 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.

CNH Industrial NV'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
=5562.802/4314.485*365 / 4
=117.65

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

CNH Industrial NV'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 )
=4314.485 / 5562.802
=0.78

* 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.


CNH Industrial NV Inventory-to-Revenue Related Terms

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CNH Industrial NV (WBO:CNHI) Business Description

Traded in Other Exchanges
Address
25 St. James's Street, London, GBR, SW1A 1HA
CNH Industrial is a global manufacturer of heavy machinery, with a range of products including agricultural and construction equipment. One of its most recognizable brands, Case IH, has served farmers for generations. The company's products are available through a robust dealer network, which includes over 3,600 dealer and distribution locations globally. CNH's finance arm provides retail financing for equipment to its customers in addition to wholesale financing for dealers, which increases the likelihood of product sales.