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Volvo Car AB (OSTO:VOLCAR B) Inventory-to-Revenue : 0.69 (As of Mar. 2024)


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What is Volvo Car AB 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. Volvo Car AB's Average Total Inventories for the quarter that ended in Mar. 2024 was kr64,871 Mil. Volvo Car AB's Revenue for the three months ended in Mar. 2024 was kr93,878 Mil. Volvo Car AB's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.69.

Volvo Car AB's Inventory-to-Revenue for the quarter that ended in Mar. 2024 increased from Dec. 2023 (0.53) to Dec. 2023 (0.69)

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. Volvo Car AB's Days Inventory for the three months ended in Mar. 2024 was 78.09.

Inventory Turnover measures how fast the company turns over its inventory within a year. Volvo Car AB's Inventory Turnover for the quarter that ended in Mar. 2024 was 1.17.


Volvo Car AB Inventory-to-Revenue Historical Data

The historical data trend for Volvo Car AB'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.

Volvo Car AB Inventory-to-Revenue Chart

Volvo Car AB Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Inventory-to-Revenue
Get a 7-Day Free Trial 0.14 0.14 0.13 0.13 0.13

Volvo Car AB Quarterly Data
Dec18 Dec19 Jun20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 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 0.51 0.52 0.63 0.53 0.69

Competitive Comparison of Volvo Car AB's Inventory-to-Revenue

For the Auto Manufacturers subindustry, Volvo Car AB'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.


Volvo Car AB's Inventory-to-Revenue Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Volvo Car AB's Inventory-to-Revenue distribution charts can be found below:

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



Volvo Car AB 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.

Volvo Car AB'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 )
=( (46951 + 57058) / 2 ) / 399343
=52004.5 / 399343
=0.13

Volvo Car AB'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: Dec. 2023 ) + Total Inventories (Q: Mar. 2024 )) / count ) / Revenue (Q: Mar. 2024 )
=( (57058 + 72684) / 2 ) / 93878
=64871 / 93878
=0.69

* 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.


Volvo Car AB  (OSTO:VOLCAR B) 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.

Volvo Car AB's Days Inventory for the three 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
=64871/75806*365 / 4
=78.09

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

Volvo Car AB'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 )
=75806 / 64871
=1.17

* 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.


Volvo Car AB Inventory-to-Revenue Related Terms

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Volvo Car AB (OSTO:VOLCAR B) Business Description

Traded in Other Exchanges
Address
VAK Building, Gunnar Engellaus Vag, Gothenburg, SWE, 405 31
Volvo Car AB manufactures, designs, and supplies automobiles. The company offers a wide range of cars. Geographically, it derives a majority of its revenue from China and also has a presence in the US; Sweden; Germany; United Kingdom; Japan, and South Korea. It generates maximum revenue from the sale of new cars.

Volvo Car AB (OSTO:VOLCAR B) Headlines

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