Varian Medical Systems (Varian Medical Systems) Inventory-to-Revenue : 0.70 (As of Dec. 2020)

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What is Varian Medical Systems 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. Varian Medical Systems's Average Total Inventories for the quarter that ended in Dec. 2020 was $544 Mil. Varian Medical Systems's Revenue for the three months ended in Dec. 2020 was $779 Mil. Varian Medical Systems's Inventory-to-Revenue for the quarter that ended in Dec. 2020 was 0.70.

Varian Medical Systems's Inventory-to-Revenue for the quarter that ended in Dec. 2020 increased from Sep. 2020 (0.66) to Sep. 2020 (0.70)

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. Varian Medical Systems's Days Inventory for the three months ended in Dec. 2020 was 118.25.

Inventory Turnover measures how fast the company turns over its inventory within a year. Varian Medical Systems's Inventory Turnover for the quarter that ended in Dec. 2020 was 0.77.

Varian Medical Systems Inventory-to-Revenue Historical Data

The historical data trend for Varian Medical Systems'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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Varian Medical Systems Inventory-to-Revenue Chart

Varian Medical Systems Annual Data

Trend

Sep11

Sep12

Sep13

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Inventory-to-Revenue

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0.20

0.16

0.15

0.17

Varian Medical Systems Quarterly Data
	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20
Inventory-to-Revenue	Get a 7-Day Free Trial															0.69	0.76	0.87	0.66	0.70

Competitive Comparison of Varian Medical Systems's Inventory-to-Revenue

For the Medical Instruments & Supplies subindustry, Varian Medical Systems'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.

Varian Medical Systems's Inventory-to-Revenue Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Varian Medical Systems's Inventory-to-Revenue distribution charts can be found below:

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

Varian Medical Systems Inventory-to-Revenue Calculation

Varian Medical Systems's Inventory-to-Revenue for the fiscal year that ended in Sep. 2020 is calculated as

	Inventory-to-Revenue (A: Sep. 2020 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (A: Sep. 2019 )	+	Total Inventories (A: Sep. 2020 ))	/	count )	/	Revenue (A: Sep. 2020 )
=	( (551.5	+	516.3)	/	2 )	/	3168.2
=	533.9					/	3168.2
=	0.17

Varian Medical Systems's Inventory-to-Revenue for the quarter that ended in Dec. 2020 is calculated as

	Inventory-to-Revenue (Q: Dec. 2020 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (Q: Sep. 2020 )	+	Total Inventories (Q: Dec. 2020 ))	/	count )	/	Revenue (Q: Dec. 2020 )
=	( (516.3	+	571.7)	/	2 )	/	778.8
=	544					/	778.8
=	0.70

Varian Medical Systems (NYSE:VAR) Inventory-to-Revenue Explanation

An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:

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.

Varian Medical Systems's Days Inventory for the three months ended in Dec. 2020 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2020 )	/	Cost of Goods Sold (Q: Dec. 2020 )	*	Days in Period
	=	544	/	419.8	*	365 / 4
	=	118.25

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

Varian Medical Systems's Inventory Turnover for the quarter that ended in Dec. 2020 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Dec. 2020 )	/	Average Total Inventories (Q: Dec. 2020 )
	=	419.8	/	544
	=	0.77

Varian Medical Systems Inventory-to-Revenue Related Terms

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Varian Medical Systems (Varian Medical Systems) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Varian Medical Systems Inc (NYSE:VAR) » Definitions » Inventory-to-Revenue

Comparable Companies

Traded in Other Exchanges

N/A

Address

3100 Hansen Way, Palo Alto, CA, USA, 94304-1038

Website

https://www.varian.com

Varian Medical Systems designs, manufactures, and sells radiation technology for use in two business segments: oncology systems and proton therapy. The Americas account for the largest portion of revenue (47%), followed by Europe, the Middle East, and Africa (33%) and Asia-Pacific (19%).

Executives

Jesse Michael Bruff	officer: SVP Finance, CFO	3100 HANSEN WAY, PALO ALTO CA 94304
Magnus Momsen	officer: SVP, CAO, Corporate Controller	VARIAN MEDICAL SYSTEMS INC. 3100 HANSEN WAY MAIL STOP E327 PALO ALTO CA 94304
Dow R Wilson	director, officer: President and CEO	VARIAN MEDICAL SYSTEMS INC, 3100 HANSEN WAY MAIL STOP E327, PALO ALTO CA 94304
Kolleen T Kennedy	officer: Pres. Proton Solutions, CGO	VARIAN MEDICAL SYSTEMS INC, 3100 HANSEN WAY MAIL STOP E327, PALO ALTO CA 94304
Christopher A. Toth	officer: SVP and Pres. Oncology Systems	1252 COOLIDGE AVE., SAN JOSE CA 95125
Michael Damon Hutchinson	officer: SVP,Chief Legal Officer, Secy	2825 AIRVIEW BLVD, KALAMAZOO MI 49002
Jean Luc Butel	director	ONE BAXTER PARKWAY, DEERFIELD IL 60015
John W Kuo	officer: SVP, Gen Counsel and Secretary	VARIAN MEDICAL SYSTEMS INC, 3100 HANSEN WAY MAIL STOP E327, PALO ALTO CA 94304
Judy Bruner	director	C/O SANDISK CORPORATION, 601 MCCARTHY BLVD., MILPITAS CA 95035
Beau Michelle Le	director	800 N. MICHIGAN AVENUE #3703 CHICAGO IL 60611
Anat Ashkenazi	director	LILLY CORPORATE CENTER, INDIANAPOLIS IN 46285
Jeffrey R. Balser	director	3657 RICHLAND AVE., NASHVILLE TN 37205
Regina E Dugan	director	VARIAN MEDICAL SYSTEMS INC, 3100 HANSEN WAY MAIL STOP E327, PALO ALTO CA 94304
David J Illingworth	director	3100 HANSEN WAY PALO ALTO CA 94304
R Andrew Eckert	director	THREE RAVINIA DRIVE, ATLANTA GA 30346