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Dow (DOW) Inventory-to-Revenue : 0.58 (As of Dec. 2023)


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What is Dow 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. Dow's Average Total Inventories for the quarter that ended in Dec. 2023 was $6,144 Mil. Dow's Revenue for the three months ended in Dec. 2023 was $10,621 Mil. Dow's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.58.

Dow's Inventory-to-Revenue for the quarter that ended in Dec. 2023 declined from Sep. 2023 (0.59) to Sep. 2023 (0.58)

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. Dow's Days Inventory for the three months ended in Dec. 2023 was 58.12.

Inventory Turnover measures how fast the company turns over its inventory within a year. Dow's Inventory Turnover for the quarter that ended in Dec. 2023 was 1.57.


Dow Inventory-to-Revenue Historical Data

The historical data trend for Dow'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.

Dow Inventory-to-Revenue Chart

Dow Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Inventory-to-Revenue
Get a 7-Day Free Trial 0.15 0.16 0.12 0.13 0.15

Dow 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 0.61 0.58 0.58 0.59 0.58

Competitive Comparison of Dow's Inventory-to-Revenue

For the Chemicals subindustry, Dow'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.


Dow's Inventory-to-Revenue Distribution in the Chemicals Industry

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

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



Dow 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.

Dow'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 )
=( (6988 + 6076) / 2 ) / 44622
=6532 / 44622
=0.15

Dow'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 )
=( (6211 + 6076) / 2 ) / 10621
=6143.5 / 10621
=0.58

* 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.


Dow  (NYSE:DOW) 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.

Dow'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
=6143.5/9646*365 / 4
=58.12

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

Dow'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 )
=9646 / 6143.5
=1.57

* 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.


Dow Inventory-to-Revenue Related Terms

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


Dow (DOW) Business Description

Address
2211 H.H. Dow Way, Midland, MI, USA, 48674
Dow Chemical is a diversified global chemicals producer, formed in 2019 as a result of the DowDuPont merger and subsequent separations. The firm is a leading producer of several chemicals, including polyethylene, ethylene oxide, and silicone rubber. Its products have numerous applications in both consumer and industrial end markets.
Executives
Richard K Davis director 800 NICOLLET MALL, MINNEAPOLIS MN 55402
Jeffrey L. Tate officer: Chief Financial Officer 2211 H.H. DOW WAY, MIDLAND MI 48674
Debra L. Dial director 208 S. AKARD, 29TH FLOOR, DALLAS TX 75202
Lisa Bryant officer: Chief Human Resources Officer 2211 H.H. DOW WAY, MIDLAND MI 48674
Howard I Ungerleider officer: President and CFO 2211 H.H. DOW WAY, MIDLAND MI 48674
Jerri Devard director 120 E 87TH STREET, #P6A, NEW YORK NY 10128
Jacqueline C. Hinman director 9191 SOUTH JAMAICA STREET, ENGLEWOOD CO 80112
James R Fitterling officer: Chief Executive Officer 2211 H.H. DOW WAY, MIDLAND MI 48674
Moreno Mejia Luis Alberto director C/O DOW INC., 2211 H.H. DOW WAY, MIDLAND MI 48674
John Maurice Sampson officer: Senior Vice President C/O DOW INC., 2211 H.H. DOW WAY, MIDLAND MI 48674
Peter Holicki officer: Senior Vice President 2211 H.H. DOW WAY, MIDLAND MI 48674
Banister Gaurdie E. Jr. director 2211 H.H. DOW WAY, MIDLAND MI 48674
Diego Donoso officer: President, Pkg & Spec Plastics 2211 H.H. DOW WAY, MIDLAND MI 48674
Jack Broodo officer: President, Feedstocks & Energy 2211 H.H. DOW WAY, MIDLAND MI 48640
Jane Palmieri officer: President, Ind Interm & Infras 2211 H.H. DOW WAY, MIDLAND MI 48674

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