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Rolls-Royce Holdings Inventory-to-Revenue

: 0.80 (As of Jun. 2020)
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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. Rolls-Royce Holdings's Total Inventories for the quarter that ended in Jun. 2020 was $5,846 Mil. Rolls-Royce Holdings's Revenue for the six months ended in Jun. 2020 was $7,289 Mil. Rolls-Royce Holdings's Inventory-to-Revenue for the quarter that ended in Jun. 2020 was 0.80.

Rolls-Royce Holdings's Inventory-to-Revenue for the quarter that ended in Jun. 2020 increased from Dec. 2019 (0.51) to Dec. 2019 (0.80)

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. Rolls-Royce Holdings's Days Inventory for the six months ended in Jun. 2020 was 130.92.

Total Inventories can be measured by Days Sales of Inventory (DSI). Rolls-Royce Holdings's days sales of inventory (DSI) for the six months ended in Jun. 2020 was 146.37.

Inventory Turnover measures how fast the company turns over its inventory within a year. Rolls-Royce Holdings's Inventory Turnover for the quarter that ended in Jun. 2020 was 1.39.


Rolls-Royce Holdings Inventory-to-Revenue Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Rolls-Royce Holdings Annual Data
Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Inventory-to-Revenue Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.20 0.21 0.23 0.26 0.26

Rolls-Royce Holdings Semi-Annual Data
Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20
Inventory-to-Revenue 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 Premium Member Only Premium Member Only Premium Member Only 0.53 0.52 0.57 0.51 0.80

Competitive Comparison
* 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.


Rolls-Royce Holdings Inventory-to-Revenue Distribution

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



Rolls-Royce Holdings 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.

Rolls-Royce Holdings's Inventory-to-Revenue for the fiscal year that ended in Dec. 2019 is calculated as

Inventory-to-Revenue (A: Dec. 2019 )
=Total Inventories / Revenue
=( (Total Inventories (A: Dec. 2018 ) + Total Inventories (A: Dec. 2019 )) / count ) / Revenue (A: Dec. 2019 )
=( (5426.582278481 + 5661.8610747051) / 2 ) / 21739.187418087
=5544.2216765931 / 21739.187418087
=0.26

Rolls-Royce Holdings's Inventory-to-Revenue for the quarter that ended in Jun. 2020 is calculated as

Inventory-to-Revenue (Q: Jun. 2020 )
=Total Inventories / Revenue
=( (Total Inventories (Q: Dec. 2019 ) + Total Inventories (Q: Jun. 2020 )) / count ) / Revenue (Q: Jun. 2020 )
=( (5661.8610747051 + 6030.0375469337) / 2 ) / 7289.1113892365
=5845.9493108194 / 7289.1113892365
=0.80

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Rolls-Royce Holdings  (OTCPK:RYCEF) 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.

Rolls-Royce Holdings's Days Inventory for the six months ended in Jun. 2020 is calculated as:

Days Inventory=Total Inventories (Q: Jun. 2020 )/Cost of Goods Sold (Q: Jun. 2020 )*Days in Period
=5845.9493108194/8148.9361702128*365 / 2
=130.92

2. Total Inventories can be measured by Days Sales of Inventory (DSI).

Rolls-Royce Holdings's Days Sales of Inventory for the six months ended in Jun. 2020 is

Days Sales of Inventory (DSI)=Total Inventories (Q: Jun. 2020 )/Revenue (Q: Jun. 2020 )*Days in Period
=5845.9493108194/7289.1113892365*365 / 2
=146.37

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

Rolls-Royce Holdings's Inventory Turnover for the quarter that ended in Jun. 2020 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Jun. 2020 ) / Total Inventories (Q: Jun. 2020 )
=8148.9361702128 / 5845.9493108194
=1.39

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Rolls-Royce Holdings Inventory-to-Revenue Related Terms


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