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Rolls-Royce Holdings (Rolls-Royce Holdings) Inventory-to-Revenue : 0.56 (As of Dec. 2023)


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What is Rolls-Royce Holdings 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. Rolls-Royce Holdings's Average Total Inventories for the quarter that ended in Dec. 2023 was $6,306 Mil. Rolls-Royce Holdings's Revenue for the six months ended in Dec. 2023 was $11,346 Mil. Rolls-Royce Holdings's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.56.

Rolls-Royce Holdings's Inventory-to-Revenue for the quarter that ended in Dec. 2023 declined from Jun. 2023 (0.64) to Jun. 2023 (0.56)

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. Rolls-Royce Holdings's Days Inventory for the six months ended in Dec. 2023 was 129.89.

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 Dec. 2023 was 1.41.


Rolls-Royce Holdings Inventory-to-Revenue Historical Data

The historical data trend for Rolls-Royce Holdings'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.

Rolls-Royce Holdings Inventory-to-Revenue Chart

Rolls-Royce Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Inventory-to-Revenue
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.26 0.34 0.33 0.32 0.28

Rolls-Royce Holdings 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 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 0.62 0.75 0.58 0.64 0.56

Competitive Comparison of Rolls-Royce Holdings's Inventory-to-Revenue

For the Aerospace & Defense subindustry, Rolls-Royce Holdings'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.


Rolls-Royce Holdings's Inventory-to-Revenue Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Rolls-Royce Holdings's Inventory-to-Revenue distribution charts can be found below:

* 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. 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 )
=( (5734.47 + 6136.709) / 2 ) / 20868.354
=5935.5895 / 20868.354
=0.28

Rolls-Royce Holdings'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 )
=( (6476.01 + 6136.709) / 2 ) / 11345.57
=6306.3595 / 11345.57
=0.56

* 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.


Rolls-Royce Holdings  (OTCPK:RYCEY) 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 Dec. 2023 is calculated as:

Days Inventory=Average Total Inventories (Q: Dec. 2023 )/Cost of Goods Sold (Q: Dec. 2023 )*Days in Period
=6306.3595/8860.76*365 / 2
=129.89

2. 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 Dec. 2023 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Dec. 2023 ) / Average Total Inventories (Q: Dec. 2023 )
=8860.76 / 6306.3595
=1.41

* 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.


Rolls-Royce Holdings Inventory-to-Revenue Related Terms

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


Rolls-Royce Holdings (Rolls-Royce Holdings) Business Description

Traded in Other Exchanges
Address
90 York Way, Kings Place, London, GBR, N1 9FX
Rolls-Royce operates three core business segments: civil aerospace, power systems, and defense. The civil aerospace segment builds engines powering wide-body aircraft, regional and business jets, and offers aftermarket services. Twenty years ago, the firm pioneered full-service flight hour contracts with the TotalCare package. Power systems provides power solutions to multiple end markets (defense, agriculture, marine, and power generation) while the defense business provides military, ground vehicle and naval propulsion solutions.

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