Shell (SHEL) Inventory-to-Revenue

: 0.36 (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. Shell's Average Total Inventories for the quarter that ended in Dec. 2023 was $28,125 Mil. Shell's Revenue for the three months ended in Dec. 2023 was $78,732 Mil. Shell's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.36.

Shell's Inventory-to-Revenue for the quarter that ended in Dec. 2023 declined from Sep. 2023 (0.38) to Sep. 2023 (0.36)

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. Shell's Days Inventory for the three months ended in Dec. 2023 was 35.27.

Inventory Turnover measures how fast the company turns over its inventory within a year. Shell's Inventory Turnover for the quarter that ended in Dec. 2023 was 2.59.

Shell Inventory-to-Revenue Historical Data

The historical data trend for Shell'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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Shell Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory-to-Revenue

0.07

0.12

0.09

0.08

0.09

Shell Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory-to-Revenue																0.33	0.35	0.37	0.38	0.36

Competitive Comparison

For the Oil & Gas Integrated subindustry, Shell'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.

Shell Inventory-to-Revenue Distribution

For the Oil & Gas industry and Energy sector, Shell's Inventory-to-Revenue distribution charts can be found below:

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

Shell Inventory-to-Revenue Calculation

Shell'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 )
=	( (31894	+	26019)	/	2 )	/	316620
=	28956.5					/	316620
=	0.09

Shell'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: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )	/	Revenue (Q: Dec. 2023 )
=	( (30230	+	26019)	/	2 )	/	78732
=	28124.5					/	78732
=	0.36

Shell (NYSE:SHEL) 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.

Shell's Days Inventory for the three 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
	=	28124.5	/	72773	*	365 / 4
	=	35.27

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

Shell'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 )
	=	72773	/	28124.5
	=	2.59

Shell Inventory-to-Revenue Related Terms

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Shell (SHEL) Business Description

Industry

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Traded in Other Exchanges

RYDAF:USA SHELL:Netherlands SHEL:Mexico SHELl:UK SHEL:UK R6C0:Germany R6C0:Germany R6C0:Germany SHEL:Argentina

Address

Shell Centre, London, GBR, SE1 7NA

Website

https://www.shell.com

Shell is an integrated oil and gas company that explores for, produces, and refines oil around the world. In 2022, it produced 1.5 million barrels of liquids and 7.9 billion cubic feet of natural gas per day. At year-end 2022, reserves stood at 9.4 billion barrels of oil equivalent, 50% of which consisted of liquids. Its production and reserves are in Europe, Asia, Oceania, Africa, and North and South America. The company operates refineries with capacity of 1.7 mmb/d located in the Americas, Asia, Africa, and Europe and sells 12 million tons per year of chemicals. Its largest chemical plants, often integrated with its local refineries, are in Central Europe, China, Singapore, and North America.