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Nestle (XSWX:NESN) Inventory-to-Revenue : 0.28 (As of Jun. 2024)


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What is Nestle 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. Nestle's Average Total Inventories for the quarter that ended in Jun. 2024 was CHF12,521 Mil. Nestle's Revenue for the six months ended in Jun. 2024 was CHF45,231 Mil. Nestle's Inventory-to-Revenue for the quarter that ended in Jun. 2024 was 0.28.

Nestle's Inventory-to-Revenue for the quarter that ended in Jun. 2024 declined from Dec. 2023 (0.29) to Dec. 2023 (0.28)

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. Nestle's Days Inventory for the six months ended in Jun. 2024 was 96.05.

Inventory Turnover measures how fast the company turns over its inventory within a year. Nestle's Inventory Turnover for the quarter that ended in Jun. 2024 was 1.90.


Nestle Inventory-to-Revenue Historical Data

The historical data trend for Nestle'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.

Nestle Inventory-to-Revenue Chart

Nestle 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 0.10 0.12 0.13 0.14 0.14

Nestle Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 0.30 0.31 0.32 0.29 0.28

Competitive Comparison of Nestle's Inventory-to-Revenue

For the Packaged Foods subindustry, Nestle'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.


Nestle's Inventory-to-Revenue Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Nestle's Inventory-to-Revenue distribution charts can be found below:

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



Nestle 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.

Nestle'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 )
=( (15019 + 11896) / 2 ) / 93351
=13457.5 / 93351
=0.14

Nestle's Inventory-to-Revenue for the quarter that ended in Jun. 2024 is calculated as

Inventory-to-Revenue (Q: Jun. 2024 )
=Average Total Inventories / Revenue
=( (Total Inventories (Q: Dec. 2023 ) + Total Inventories (Q: Jun. 2024 )) / count ) / Revenue (Q: Jun. 2024 )
=( (11896 + 13146) / 2 ) / 45231
=12521 / 45231
=0.28

* 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.


Nestle  (XSWX:NESN) 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.

Nestle's Days Inventory for the six months ended in Jun. 2024 is calculated as:

Days Inventory=Average Total Inventories (Q: Jun. 2024 )/Cost of Goods Sold (Q: Jun. 2024 )*Days in Period
=12521/23790*365 / 2
=96.05

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

Nestle's Inventory Turnover for the quarter that ended in Jun. 2024 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Jun. 2024 ) / Average Total Inventories (Q: Jun. 2024 )
=23790 / 12521
=1.90

* 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.


Nestle Inventory-to-Revenue Related Terms

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Nestle Business Description

Address
Avenue Nestle 55, Vevey, CHE, CH-1800
With a 150-year-plus history, Nestle is the largest food and beverage manufacturer in the world by sales, generating more than CHF 90 billion in annual revenue. Its diverse product portfolio includes brands such as Nestle, Nescafe, Perrier, Pure Life, and Purina. Nestle also owns around 20% of French cosmetics firm L'Oreal. The company employs 275,000 people around the world and has a vast portfolio of global products, with more than 30 brands each achieving more than CHF 1 billion in sales annually and a geographic presence that spans almost 190 countries.

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