D.E. Master Blenders 1753 N.V. (XAMS:DE) Inventory-to-Revenue : 0.15 (As of Jun. 2012)

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What is D.E. Master Blenders 1753 N.V. 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. D.E. Master Blenders 1753 N.V.'s Average Total Inventories for the quarter that ended in Jun. 2012 was €421 Mil. D.E. Master Blenders 1753 N.V.'s Revenue for the six months ended in Jun. 2012 was €2,795 Mil. D.E. Master Blenders 1753 N.V.'s Inventory-to-Revenue for the quarter that ended in Jun. 2012 was 0.15.

D.E. Master Blenders 1753 N.V.'s Inventory-to-Revenue for the quarter that ended in Jun. 2012 declined from Jun. 2011 (0.17) to Jun. 2011 (0.15)

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. D.E. Master Blenders 1753 N.V.'s Days Inventory for the six months ended in Jun. 2012 was 43.01.

Inventory Turnover measures how fast the company turns over its inventory within a year. D.E. Master Blenders 1753 N.V.'s Inventory Turnover for the quarter that ended in Jun. 2012 was 4.24.

D.E. Master Blenders 1753 N.V. Inventory-to-Revenue Historical Data

The historical data trend for D.E. Master Blenders 1753 N.V.'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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D.E. Master Blenders 1753 N.V. Inventory-to-Revenue Chart

D.E. Master Blenders 1753 N.V. Annual Data

Trend

Jun11

Jun12

Inventory-to-Revenue

0.17

0.15

D.E. Master Blenders 1753 N.V. Semi-Annual Data
	Jun11	Jun12
Inventory-to-Revenue	0.17	0.15

Competitive Comparison of D.E. Master Blenders 1753 N.V.'s Inventory-to-Revenue

For the Packaged Foods subindustry, D.E. Master Blenders 1753 N.V.'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.

D.E. Master Blenders 1753 N.V.'s Inventory-to-Revenue Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, D.E. Master Blenders 1753 N.V.'s Inventory-to-Revenue distribution charts can be found below:

* The bar in red indicates where D.E. Master Blenders 1753 N.V.'s Inventory-to-Revenue falls into.

D.E. Master Blenders 1753 N.V. Inventory-to-Revenue Calculation

D.E. Master Blenders 1753 N.V.'s Inventory-to-Revenue for the fiscal year that ended in Jun. 2012 is calculated as

	Inventory-to-Revenue (A: Jun. 2012 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (A: Jun. 2011 )	+	Total Inventories (A: Jun. 2012 ))	/	count )	/	Revenue (A: Jun. 2012 )
=	( (437.545	+	404.863)	/	2 )	/	2795.018
=	421.204					/	2795.018
=	0.15

D.E. Master Blenders 1753 N.V.'s Inventory-to-Revenue for the quarter that ended in Jun. 2012 is calculated as

	Inventory-to-Revenue (Q: Jun. 2012 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (Q: Jun. 2011 )	+	Total Inventories (Q: Jun. 2012 ))	/	count )	/	Revenue (Q: Jun. 2012 )
=	( (437.545	+	404.863)	/	2 )	/	2795.018
=	421.204					/	2795.018
=	0.15

D.E. Master Blenders 1753 N.V. (XAMS:DE) 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.

D.E. Master Blenders 1753 N.V.'s Days Inventory for the six months ended in Jun. 2012 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jun. 2012 )	/	Cost of Goods Sold (Q: Jun. 2012 )	*	Days in Period
	=	421.204	/	1787.088	*	365 / 2
	=	43.01

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

D.E. Master Blenders 1753 N.V.'s Inventory Turnover for the quarter that ended in Jun. 2012 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Jun. 2012 )	/	Average Total Inventories (Q: Jun. 2012 )
	=	1787.088	/	421.204
	=	4.24

D.E. Master Blenders 1753 N.V. Inventory-to-Revenue Related Terms

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D.E. Master Blenders 1753 N.V. (XAMS:DE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » D.E. Master Blenders 1753 N.V. (XAMS:DE) » Definitions » Inventory-to-Revenue

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.demasterblenders1753.com

D E Master Blenders 1753 NV was incorporated on February 27, 2012 as a private company with limited liability. On April 4, 2012, it changed its name to D.E MASTER BLENDERS 1753 B.V. and moved its corporate seat to Joure (SkasterlÃ¢n), the Netherlands. The Company is a pure-play coffee and tea company that offers high-quality, coffee and tea products that are known in retail and out of home markets across Europe, Brazil, Australia and Thailand. It has a portfolio of coffee and tea brands that address the needs of both its retail and out of home customers in its markets. The Company's segments are Retail-Western Europe, Retail-Rest of World and Out of Home. In Retail-Western Europe and Retail-Rest of World segments, its principal products are multi-serve coffee, single-serve coffee pads and capsules, instant coffee and tea. It sells these products predominantly to supermarkets, hypermarkets and through international buying groups. In its Out of Home segment, it offers hot beverage products but focus on its liquid roast products and related coffee machines. Its products and the related machines in the Out of Home segment are sold either directly to businesses, hotels, hospitals and restaurants or to foodservice distributors for distribution to the customer. Douwe Egberts is the Company's established brand in the multi-serve category and coffee brand in the Netherlands and Belgium and also has solid market positions in the United Kingdom and Hungary. In addition to Douwe Egberts, its multi-serve coffee is sold under the following brands: L'OR and Maison du CafÃ© in France, Marcilla in Spain,Merrild in Denmark, Harris in Australia, Kanis & Gunnink in the Netherlands, Jacqmotte in Belgium, Prima in Poland, and PilÃ£o, Caboclo, Damasco and Moka in Brazil. Its single-serve coffee is sold under the brand name Senseo which is generally co-branded, such as Douwe Egberts Senseo and L'OR Senseo, in the Netherlands, Belgium, France, Germany, and Spain and selected other countries. In April 2010, it launched the L'OR EspressO capsules brand in France, and L'OR EspressO has subsequently been successfully launched in the Netherlands and Belgium. In May 2011, it successfully launched its capsules brand in Spain as L'aRÃ´me EspressO. The Company's instant coffee is sold under the Moccona brand in Australia and Thailand, under the Douwe Egberts brand in the United Kingdom and under local brands in certain of its markets. Its tea is sold under the brand names Pickwick in the Netherlands, Belgium, the Czech Republic, Hungary and Denmark and Hornimans in Spain. The Out of Home segment operates under the Cafitesse umbrella brand, which is principally co-branded Douwe Egberts Cafitesse, for its liquid roast coffee products and machines and under its Piazza D'Oro brand for premium espresso products and machines. The Company competes with other large international and national coffee and tea companies as well as smaller regional and specialty coffee and te