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. Versum Materials's Average Total Inventories for the quarter that ended in Jun. 2019 was $205 Mil. Versum Materials's Revenue for the
three
months ended in Jun. 2019 was $324 Mil.
Versum Materials's Inventory-to-Revenue for the quarter that ended in Jun. 2019 was 0.63.
Versum Materials's Inventory-to-Revenue for the quarter that ended in Jun. 2019
increased
from Mar. 2019 (0.60) to Mar. 2019 (0.63)
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.
Versum Materials's Days Inventory for the
three
months ended in Jun. 2019 was 100.64.
Inventory Turnover measures how fast the company turns over its inventory within a year.
Versum Materials's Inventory Turnover for the quarter that ended in Jun. 2019 was 0.91.
Versum Materials Inventory-to-Revenue Historical Data
The historical data trend for Versum Materials'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 Versum Materials's Inventory-to-Revenue
For the Chemicals subindustry, Versum Materials'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.
Versum Materials's Inventory-to-Revenue Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Versum Materials's Inventory-to-Revenue distribution charts can be found below:
* The bar in red indicates where Versum Materials's Inventory-to-Revenue falls into.
Versum Materials 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.
Versum Materials's Inventory-to-Revenue for the fiscal year that ended in Sep. 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.
Versum Materials's Days Inventory for the
three
months ended in Jun. 2019 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.
Versum Materials Inventory-to-Revenue Related Terms
Thank you for viewing the detailed overview of Versum Materials's Inventory-to-Revenue provided by GuruFocus.com. Please click on the following links to see related term pages.
Versum Materials (Versum Materials) Business Description
Versum Materials is a leading global provider of electronic materials for the integrated circuit and flat-panel display markets. It supplies specialty chemicals and materials, high-purity specialty gases, proprietary delivery systems, and related services. The semiconductor industry accounts for 85% of sales. Versum generated fiscal 2017 revenue and adjusted EBIT of $1,127 million and $326 million, respectively. Versum employs almost 2,000 and serves 250 customers from its global network of 14 production sites and six R&D facilities.
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