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. KMG Chemicals's Average Total Inventories for the quarter that ended in Jul. 2018 was $54.2 Mil. KMG Chemicals's Revenue for the
three
months ended in Jul. 2018 was $122.4 Mil.
KMG Chemicals's Inventory-to-Revenue for the quarter that ended in Jul. 2018 was 0.44.
KMG Chemicals's Inventory-to-Revenue for the quarter that ended in Jul. 2018
increased
from Apr. 2018 (0.44) to Apr. 2018 (0.44)
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.
Days Inventory indicates the number of days of goods in sales that a company has in the inventory.
KMG Chemicals's Days Inventory for the
three
months ended in Jul. 2018 was 69.64.
Inventory Turnover measures how fast the company turns over its inventory within a year.
KMG Chemicals's Inventory Turnover for the quarter that ended in Jul. 2018 was 1.31.
KMG Chemicals Inventory-to-Revenue Historical Data
The historical data trend for KMG Chemicals'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.
Competitive Comparison of KMG Chemicals's Inventory-to-Revenue
For the Specialty Chemicals subindustry, KMG Chemicals'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.
KMG Chemicals's Inventory-to-Revenue Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, KMG Chemicals's Inventory-to-Revenue distribution charts can be found below:
* The bar in red indicates where KMG Chemicals's Inventory-to-Revenue falls into.
KMG Chemicals 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.
KMG Chemicals's Inventory-to-Revenue for the fiscal year that ended in Jul. 2018 is calculated as
* 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.
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.
KMG Chemicals's Days Inventory for the
three
months ended in Jul. 2018 is calculated as:
* 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.
KMG Chemicals Inventory-to-Revenue Related Terms
Thank you for viewing the detailed overview of KMG Chemicals's Inventory-to-Revenue provided by GuruFocus.com. Please click on the following links to see related term pages.
KMG Chemicals (KMG Chemicals) Business Description
KMG Chemicals Inc manufactures and sells a variety of chemicals and chemical-based products. The firm organizes itself into two segments based on product type. The electronic chemicals segment, which generates the majority of revenue, sells chemicals primarily to manufacturers of semiconductors. The other chemicals segment sells industrial sealants and lubricants primarily to the oil and gas storage and distribution industry as well as wood treatment chemicals used primarily to treat utility poles and cross arms. The majority of revenue comes from the United States.
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