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Treatt (LSE:TET) Inventory-to-Revenue : 0.86 (As of Mar. 2024)


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What is Treatt 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. Treatt's Average Total Inventories for the quarter that ended in Mar. 2024 was £61.7 Mil. Treatt's Revenue for the six months ended in Mar. 2024 was £72.1 Mil. Treatt's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.86.

Treatt's Inventory-to-Revenue for the quarter that ended in Mar. 2024 declined from Sep. 2023 (0.86) to Sep. 2023 (0.86)

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. Treatt's Days Inventory for the six months ended in Mar. 2024 was 216.12.

Inventory Turnover measures how fast the company turns over its inventory within a year. Treatt's Inventory Turnover for the quarter that ended in Mar. 2024 was 0.84.


Treatt Inventory-to-Revenue Historical Data

The historical data trend for Treatt'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.

Treatt Inventory-to-Revenue Chart

Treatt Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Inventory-to-Revenue
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.34 0.33 0.34 0.41 0.44

Treatt Semi-Annual Data
Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24
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 0.79 0.85 0.85 0.86 0.86

Competitive Comparison of Treatt's Inventory-to-Revenue

For the Specialty Chemicals subindustry, Treatt'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.


Treatt's Inventory-to-Revenue Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Treatt's Inventory-to-Revenue distribution charts can be found below:

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



Treatt 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.

Treatt's Inventory-to-Revenue for the fiscal year that ended in Sep. 2023 is calculated as

Inventory-to-Revenue (A: Sep. 2023 )
=Average Total Inventories / Revenue
=( (Total Inventories (A: Sep. 2022 ) + Total Inventories (A: Sep. 2023 )) / count ) / Revenue (A: Sep. 2023 )
=( (68.351 + 62.395) / 2 ) / 147.397
=65.373 / 147.397
=0.44

Treatt's Inventory-to-Revenue for the quarter that ended in Mar. 2024 is calculated as

Inventory-to-Revenue (Q: Mar. 2024 )
=Average Total Inventories / Revenue
=( (Total Inventories (Q: Sep. 2023 ) + Total Inventories (Q: Mar. 2024 )) / count ) / Revenue (Q: Mar. 2024 )
=( (62.395 + 60.937) / 2 ) / 72.1
=61.666 / 72.1
=0.86

* 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.


Treatt  (LSE:TET) 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.

Treatt's Days Inventory for the six months ended in Mar. 2024 is calculated as:

Days Inventory=Average Total Inventories (Q: Mar. 2024 )/Cost of Goods Sold (Q: Mar. 2024 )*Days in Period
=61.666/52.074*365 / 2
=216.12

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

Treatt's Inventory Turnover for the quarter that ended in Mar. 2024 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Mar. 2024 ) / Average Total Inventories (Q: Mar. 2024 )
=52.074 / 61.666
=0.84

* 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.


Treatt Inventory-to-Revenue Related Terms

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Treatt (LSE:TET) Business Description

Traded in Other Exchanges
Address
Skyliner Way, Bury St. Edmunds, Suffolk, GBR, IP32 7FR
Treatt PLC operates in the fragrance and FMCG industries. It is engaged in the manufacturing and supply of ingredient solutions for the flavor, fragrance, and FMCG markets. The company offers natural extracts and ingredients across a range of product categories: citrus, tea, coffee, health & wellness, fruit & vegetables, herbs, spices & florals, and high impact & aroma chemicals. Geographically, the company generates revenue from United Kingdom, Germany, Ireland, USA, China and other regions. Majority of the revenue for the company is generated from its business in USA.

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