Vale (VALE) Inventory-to-Revenue

: 0.38 (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. Vale's Average Total Inventories for the quarter that ended in Dec. 2023 was $4,899 Mil. Vale's Revenue for the three months ended in Dec. 2023 was $13,054 Mil. Vale's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.38.

Vale's Inventory-to-Revenue for the quarter that ended in Dec. 2023 declined from Sep. 2023 (0.49) to Sep. 2023 (0.38)

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. Vale's Days Inventory for the three months ended in Dec. 2023 was 64.87.

Inventory Turnover measures how fast the company turns over its inventory within a year. Vale's Inventory Turnover for the quarter that ended in Dec. 2023 was 1.41.

Vale Inventory-to-Revenue Historical Data

The historical data trend for Vale'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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Vale Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory-to-Revenue

0.12

0.11

0.08

0.10

0.11

Vale 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																0.41	0.56	0.53	0.49	0.38

Competitive Comparison

For the Other Industrial Metals & Mining subindustry, Vale'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.

Vale Inventory-to-Revenue Distribution

For the Metals & Mining industry and Basic Materials sector, Vale's Inventory-to-Revenue distribution charts can be found below:

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

Vale Inventory-to-Revenue Calculation

Vale'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 )
=	( (4482	+	4684)	/	2 )	/	41784
=	4583					/	41784
=	0.11

Vale'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 )
=	( (5114	+	4684)	/	2 )	/	13054
=	4899					/	13054
=	0.38

Vale (NYSE:VALE) 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.

Vale'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
	=	4899	/	6891	*	365 / 4
	=	64.87

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

Vale'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 )
	=	6891	/	4899
	=	1.41

Vale Inventory-to-Revenue Related Terms

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Vale (VALE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Vale SA (NYSE:VALE) » Definitions » Inventory-to-Revenue

Comparable Companies

Traded in Other Exchanges

VALE:Mexico 0LBF:UK XVALO:Spain CVLC:Germany CVLC:Germany CVLB:Germany CVLB:Germany CVLC:Germany CVLB:Germany VALE3:Brazil VALE:Argentina

Address

Praia de Botafogo, 186, Salas 501 a 1901, Botafogo, Rio de Janeiro, RJ, BRA, 22250-145

Website

https://www.vale.com

Vale is a large global miner and the world's largest producer of iron ore and pellets. In recent years the company has sold noncore assets such as its fertilizer, coal, and steel operations to concentrate on iron ore, nickel, and copper. Earnings are dominated by the bulk materials division, primarily iron ore and iron ore pellets. The base metals division is much smaller, consisting of nickel mines and smelters along with copper mines producing copper in concentrate. Vale has agreed to sell a minority 13% stake in its base metals business, which is expected to become effective early in 2024, and which is likely the first step in separating base metals and iron ore.