Pearson (LSE:PSON) Inventory-to-Revenue

: 0.06 (As of Dec. 2023)

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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. Pearson's Average Total Inventories for the quarter that ended in Dec. 2023 was £101 Mil. Pearson's Revenue for the six months ended in Dec. 2023 was £1,795 Mil. Pearson's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.06.

Pearson's Inventory-to-Revenue for the quarter that ended in Dec. 2023 declined from Jun. 2023 (0.06) to Jun. 2023 (0.06)

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. Pearson's Days Inventory for the six months ended in Dec. 2023 was 20.87.

Inventory Turnover measures how fast the company turns over its inventory within a year. Pearson's Inventory Turnover for the quarter that ended in Dec. 2023 was 8.75.

Pearson Inventory-to-Revenue Historical Data

The historical data trend for Pearson'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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Pearson Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory-to-Revenue

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0.04

0.03

Pearson Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Inventory-to-Revenue	Get a 7-Day Free Trial															0.06	0.06	0.05	0.06	0.06

Competitive Comparison

For the Publishing subindustry, Pearson'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.

Pearson Inventory-to-Revenue Distribution

For the Media - Diversified industry and Communication Services sector, Pearson's Inventory-to-Revenue distribution charts can be found below:

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

Pearson Inventory-to-Revenue Calculation

Pearson'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 )
=	( (105	+	91)	/	2 )	/	3674
=	98					/	3674
=	0.03

Pearson'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: Jun. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )	/	Revenue (Q: Dec. 2023 )
=	( (110	+	91)	/	2 )	/	1795
=	100.5					/	1795
=	0.06

Pearson (LSE:PSON) 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.

Pearson's Days Inventory for the six 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
	=	100.5	/	879	*	365 / 2
	=	20.87

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

Pearson'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 )
	=	879	/	100.5
	=	8.75

Pearson Inventory-to-Revenue Related Terms

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Pearson (LSE:PSON) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Pearson PLC (LSE:PSON) » Definitions » Inventory-to-Revenue

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Traded in Other Exchanges

PSORF:USA PSO:USA PSONl:UK PES:Germany

Address

80 Strand, London, GBR, WC2R 0RL

Website

https://plc.pearson.com

U.K.-listed Pearson is the world's largest educational provider. The company has been disposing of noncore businesses such as the Financial Times, The Economist, and publishing house Penguin, and is now focused on being an educational resource and testing provider. While Pearson's primary activity centres on higher-level education, the firm also has significant operations in providing clinical assessments, professional certification and testing.

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