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Lafarge (XPAR:LGNV) Inventory-to-Revenue : 0.44 (As of Jun. 2015)


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What is Lafarge 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. Lafarge's Average Total Inventories for the quarter that ended in Jun. 2015 was €1,553 Mil. Lafarge's Revenue for the three months ended in Jun. 2015 was €3,540 Mil. Lafarge's Inventory-to-Revenue for the quarter that ended in Jun. 2015 was 0.44.

Lafarge's Inventory-to-Revenue for the quarter that ended in Jun. 2015 declined from Mar. 2015 (0.56) to Mar. 2015 (0.44)

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. Lafarge's Days Inventory for the three months ended in Jun. 2015 was 54.15.

Inventory Turnover measures how fast the company turns over its inventory within a year. Lafarge's Inventory Turnover for the quarter that ended in Jun. 2015 was 1.69.


Lafarge Inventory-to-Revenue Historical Data

The historical data trend for Lafarge'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.

Lafarge Inventory-to-Revenue Chart

Lafarge Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Inventory-to-Revenue
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.11 0.10 0.10 0.12 0.11

Lafarge Quarterly Data
Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15
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 0.44 0.41 0.47 0.56 0.44

Competitive Comparison of Lafarge's Inventory-to-Revenue

For the Building Materials subindustry, Lafarge'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.


Lafarge's Inventory-to-Revenue Distribution in the Building Materials Industry

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

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



Lafarge 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.

Lafarge's Inventory-to-Revenue for the fiscal year that ended in Dec. 2014 is calculated as

Inventory-to-Revenue (A: Dec. 2014 )
=Average Total Inventories / Revenue
=( (Total Inventories (A: Dec. 2013 ) + Total Inventories (A: Dec. 2014 )) / count ) / Revenue (A: Dec. 2014 )
=( (1425 + 1476) / 2 ) / 12843
=1450.5 / 12843
=0.11

Lafarge's Inventory-to-Revenue for the quarter that ended in Jun. 2015 is calculated as

Inventory-to-Revenue (Q: Jun. 2015 )
=Average Total Inventories / Revenue
=( (Total Inventories (Q: Mar. 2015 ) + Total Inventories (Q: Jun. 2015 )) / count ) / Revenue (Q: Jun. 2015 )
=( (1643 + 1462) / 2 ) / 3540
=1552.5 / 3540
=0.44

* 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.


Lafarge  (XPAR:LGNV) 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.

Lafarge's Days Inventory for the three months ended in Jun. 2015 is calculated as:

Days Inventory=Average Total Inventories (Q: Jun. 2015 )/Cost of Goods Sold (Q: Jun. 2015 )*Days in Period
=1552.5/2616*365 / 4
=54.15

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

Lafarge's Inventory Turnover for the quarter that ended in Jun. 2015 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Jun. 2015 ) / Average Total Inventories (Q: Jun. 2015 )
=2616 / 1552.5
=1.69

* 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.


Lafarge Inventory-to-Revenue Related Terms

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Lafarge (XPAR:LGNV) Business Description

Traded in Other Exchanges
N/A
Address
Lafarge SA is a French limited liability company governed by French law and was founded in France in 1833 and was incorporated in 1884 under the name "J. et A. Pavin de Lafarge". The Company provides building materials. It is engaged in producing & selling cement, aggregates and ready-mix concrete, mostly under the "Lafarge" brand name. Its building products and solutions are used to construct and renovate homes, buildings and infrastructures. At year-end 2013, Company cement production operated, in 56 countries, 113 cement plants and 42 grinding plants, with an annual production capacity of 221 million tons. It also manages cement trading activities. The Company aggregates and concrete are used as raw materials for concrete, masonry, asphalt, and other industrial processes, and as base materials for roads, landfills, and building. As of December 31, 2013, Company had approximately 437 production facilities for aggregates in 23 countries. The Company's Ready-mix concrete had 1,026 concrete plants in 33 countries as of December 31, 2014. The Company also produces asphalt in North America and the United Kingdom, and sells either as a stand-alone product, or in conjunction with contracted paving. The Company operates in Western Europe, North America, Central & Eastern Europe, Middle East & Africa, and Asia.

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