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. Merck KGaA's Average Total Inventories for the quarter that ended in Dec. 2023 was $5,181 Mil. Merck KGaA's Revenue for the
three
months ended in Dec. 2023 was $5,698 Mil.
Merck KGaA's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.91.
Merck KGaA's Inventory-to-Revenue for the quarter that ended in Dec. 2023
declined
from Sep. 2023 (0.97) to Sep. 2023 (0.91)
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.
Merck KGaA's Days Inventory for the
three
months ended in Dec. 2023 was 186.30.
Inventory Turnover measures how fast the company turns over its inventory within a year.
Merck KGaA's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.49.
Merck KGaA Inventory-to-Revenue Historical Data
The historical data trend for Merck KGaA'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.
Competitive Comparison of Merck KGaA's Inventory-to-Revenue
For the Drug Manufacturers - Specialty & Generic subindustry, Merck KGaA'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.
Merck KGaA's Inventory-to-Revenue Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Merck KGaA's Inventory-to-Revenue distribution charts can be found below:
* The bar in red indicates where Merck KGaA's Inventory-to-Revenue falls into.
Merck KGaA 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.
Merck KGaA's Inventory-to-Revenue for the fiscal year that ended in Dec. 2023 is calculated as
* 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.
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.
Merck KGaA's Days Inventory for the
three
months ended in Dec. 2023 is calculated as:
* 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.
Merck KGaA Inventory-to-Revenue Related Terms
Thank you for viewing the detailed overview of Merck KGaA's Inventory-to-Revenue provided by GuruFocus.com. Please click on the following links to see related term pages.
Merck KGaA operates in three main segments: life sciences, performance materials, and healthcare. The life sciences segment (47% of 2022 sales) primarily provides laboratory consumables and services to researchers in academia and applied fields, including the biopharmaceutical industry. In the healthcare segment (35%), Merck develops, manufactures, and sells branded pharmaceuticals with significant therapeutic concentrations in oncology, multiple sclerosis, and fertility. In its electronics segment (18%), the company offers specialty materials to manufacture a variety of products, such as semiconductors, flat-screen televisions, automobiles, and cosmetics. In 1995, the E. Merck KG family publicly sold part of the company, resulting in the current 30% public ownership of the firm.
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