Headwaters (Headwaters) Inventory-to-Revenue : 0.33 (As of Mar. 2017)

View and export this data going back to 1995. Start your Free Trial

What is Headwaters 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. Headwaters's Average Total Inventories for the quarter that ended in Mar. 2017 was $85 Mil. Headwaters's Revenue for the three months ended in Mar. 2017 was $259 Mil. Headwaters's Inventory-to-Revenue for the quarter that ended in Mar. 2017 was 0.33.

Headwaters's Inventory-to-Revenue for the quarter that ended in Mar. 2017 increased from Dec. 2016 (0.30) to Dec. 2016 (0.33)

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. Headwaters's Days Inventory for the three months ended in Mar. 2017 was 41.20.

Inventory Turnover measures how fast the company turns over its inventory within a year. Headwaters's Inventory Turnover for the quarter that ended in Mar. 2017 was 2.21.

Headwaters Inventory-to-Revenue Historical Data

The historical data trend for Headwaters'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.

Headwaters Inventory-to-Revenue Chart

Headwaters Annual Data

Trend

Sep07

Sep08

Sep09

Sep10

Sep11

Sep12

Sep13

Sep14

Sep15

Sep16

Inventory-to-Revenue

Get a 7-Day Free Trial

0.05

0.06

0.07

Headwaters Quarterly Data
	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17
Inventory-to-Revenue	Get a 7-Day Free Trial															0.32	0.25	0.24	0.30	0.33

Competitive Comparison of Headwaters's Inventory-to-Revenue

For the Building Materials subindustry, Headwaters'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.

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

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

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

Headwaters Inventory-to-Revenue Calculation

Headwaters's Inventory-to-Revenue for the fiscal year that ended in Sep. 2016 is calculated as

	Inventory-to-Revenue (A: Sep. 2016 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (A: Sep. 2015 )	+	Total Inventories (A: Sep. 2016 ))	/	count )	/	Revenue (A: Sep. 2016 )
=	( (55.074	+	72.668)	/	2 )	/	974.807
=	63.871					/	974.807
=	0.07

Headwaters's Inventory-to-Revenue for the quarter that ended in Mar. 2017 is calculated as

	Inventory-to-Revenue (Q: Mar. 2017 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (Q: Dec. 2016 )	+	Total Inventories (Q: Mar. 2017 ))	/	count )	/	Revenue (Q: Mar. 2017 )
=	( (80.466	+	89.997)	/	2 )	/	259.293
=	85.2315					/	259.293
=	0.33

Headwaters (NYSE:HW) 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.

Headwaters's Days Inventory for the three months ended in Mar. 2017 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2017 )	/	Cost of Goods Sold (Q: Mar. 2017 )	*	Days in Period
	=	85.2315	/	188.786	*	365 / 4
	=	41.20

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

Headwaters's Inventory Turnover for the quarter that ended in Mar. 2017 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Mar. 2017 )	/	Average Total Inventories (Q: Mar. 2017 )
	=	188.786	/	85.2315
	=	2.21

Headwaters Inventory-to-Revenue Related Terms

Thank you for viewing the detailed overview of Headwaters's Inventory-to-Revenue provided by GuruFocus.com. Please click on the following links to see related term pages.

Headwaters (Headwaters) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » Headwaters Inc (NYSE:HW) » Definitions » Inventory-to-Revenue

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.headwaters.com

Headwaters is a manufacturer of building products for the residential construction, residential remodelling, commercial, and industrial construction industries. The range of products includes architectural stone, resin-based exterior-siding accessories, roofing, trim board, decking, railing, concrete block and brick, windows, and other building products. Headwaters sells its products to wholesale distributors in the United States or big-box stores, as well as through an in-house direct salesforce.

Executives

Donald P Newman	officer: Chief Financial Officer	224 S 108TH AVENUE, OMAHA NE 68154
Sylvia Summers	director	200 FLYNN ROAD, CAMARILLO CA 93012
Malyn K Malquist	director	10653 S. RIVER FRONT PARKWAY, SUITE 300, SOUTH JORDAN UT 84095
Ej Jake Garn	director	10653 SOUTH RIVER FRONT PARKWAY, SUITE 300, SOUTH JORDAN UT 84095
Scott K Sorensen	officer: Chief Financial Officer	10653 S. RIVER FRONT PARKWAY, SUITE 300, SOUTH JORDAN UT 84095