Franchetti SpA (MIL:FCH) Inventory-to-Revenue : 0.21 (As of Dec. 2023)

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What is Franchetti SpA 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. Franchetti SpA's Average Total Inventories for the quarter that ended in Dec. 2023 was €0.81 Mil. Franchetti SpA's Revenue for the six months ended in Dec. 2023 was €3.95 Mil. Franchetti SpA's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.21.

Franchetti SpA's Inventory-to-Revenue for the quarter that ended in Dec. 2023 increased from Jun. 2023 (0.19) to Jun. 2023 (0.21)

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. Franchetti SpA's Days Inventory for the six months ended in Dec. 2023 was 111.76.

Inventory Turnover measures how fast the company turns over its inventory within a year. Franchetti SpA's Inventory Turnover for the quarter that ended in Dec. 2023 was 1.63.

Franchetti SpA Inventory-to-Revenue Historical Data

The historical data trend for Franchetti SpA'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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Franchetti SpA Inventory-to-Revenue Chart

Franchetti SpA Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Inventory-to-Revenue

0.07

0.04

0.03

0.09

Franchetti SpA Semi-Annual Data
	Dec20	Dec21	Jun22	Dec22	Jun23	Dec23
Inventory-to-Revenue	Get a 7-Day Free Trial			-	0.12	0.05	0.19	0.21

Competitive Comparison of Franchetti SpA's Inventory-to-Revenue

For the Engineering & Construction subindustry, Franchetti SpA'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.

Franchetti SpA's Inventory-to-Revenue Distribution in the Construction Industry

For the Construction industry and Industrials sector, Franchetti SpA's Inventory-to-Revenue distribution charts can be found below:

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

Franchetti SpA Inventory-to-Revenue Calculation

Franchetti SpA'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 )
=	( (0.154	+	0.924)	/	2 )	/	6.233
=	0.539					/	6.233
=	0.09

Franchetti SpA's Inventory-to-Revenue for the quarter that ended in Dec. 2023 is calculated as

	Inventory-to-Revenue (Q: Dec. 2023 )
=	Average Total Inventories					/	Revenue
=	( (Total Inventories (Q: Jun. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )	/	Revenue (Q: Dec. 2023 )
=	( (0.7	+	0.924)	/	2 )	/	3.951
=	0.812					/	3.951
=	0.21

Franchetti SpA (MIL:FCH) 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.

Franchetti SpA's Days Inventory for the six months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	0.812	/	1.326	*	365 / 2
	=	111.76

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

Franchetti SpA's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Dec. 2023 )	/	Average Total Inventories (Q: Dec. 2023 )
	=	1.326	/	0.812
	=	1.63

Franchetti SpA Inventory-to-Revenue Related Terms

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Franchetti SpA (MIL:FCH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Franchetti SpA (MIL:FCH) » Definitions » Inventory-to-Revenue

Comparable Companies

Traded in Other Exchanges

D0E:Germany

Address

Vi Piazzale della Vittoria 7, Arzignano, ITA, I-36071

Website

https://www.franchetti.tech

Franchetti SpA is a civil and environmental engineering company specializes in the inspection, analysis and maintenance of high-value elements, such as bridges and complex transport networks.