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West Fraser Timber Co.Ltd (TSX:WFG) Inventory-to-Revenue : 0.57 (As of Mar. 2024)


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What is West Fraser Timber Co.Ltd 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. West Fraser Timber Co.Ltd's Average Total Inventories for the quarter that ended in Mar. 2024 was C$1,256 Mil. West Fraser Timber Co.Ltd's Revenue for the three months ended in Mar. 2024 was C$2,202 Mil. West Fraser Timber Co.Ltd's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.57.

West Fraser Timber Co.Ltd's Inventory-to-Revenue for the quarter that ended in Mar. 2024 increased from Dec. 2023 (0.55) to Dec. 2023 (0.57)

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. West Fraser Timber Co.Ltd's Days Inventory for the three months ended in Mar. 2024 was 75.76.

Inventory Turnover measures how fast the company turns over its inventory within a year. West Fraser Timber Co.Ltd's Inventory Turnover for the quarter that ended in Mar. 2024 was 1.20.


West Fraser Timber Co.Ltd Inventory-to-Revenue Historical Data

The historical data trend for West Fraser Timber Co.Ltd'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.

West Fraser Timber Co.Ltd Inventory-to-Revenue Chart

West Fraser Timber Co.Ltd Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Inventory-to-Revenue
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.15 0.13 0.08 0.11 0.15

West Fraser Timber Co.Ltd Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 0.67 0.65 0.50 0.55 0.57

Competitive Comparison of West Fraser Timber Co.Ltd's Inventory-to-Revenue

For the Lumber & Wood Production subindustry, West Fraser Timber Co.Ltd'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.


West Fraser Timber Co.Ltd's Inventory-to-Revenue Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, West Fraser Timber Co.Ltd's Inventory-to-Revenue distribution charts can be found below:

* The bar in red indicates where West Fraser Timber Co.Ltd's Inventory-to-Revenue falls into.



West Fraser Timber Co.Ltd 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.

West Fraser Timber Co.Ltd'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 )
=( (1401.972 + 1141.702) / 2 ) / 8658.686
=1271.837 / 8658.686
=0.15

West Fraser Timber Co.Ltd's Inventory-to-Revenue for the quarter that ended in Mar. 2024 is calculated as

Inventory-to-Revenue (Q: Mar. 2024 )
=Average Total Inventories / Revenue
=( (Total Inventories (Q: Dec. 2023 ) + Total Inventories (Q: Mar. 2024 )) / count ) / Revenue (Q: Mar. 2024 )
=( (1141.702 + 1371.197) / 2 ) / 2202.307
=1256.4495 / 2202.307
=0.57

* 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.


West Fraser Timber Co.Ltd  (TSX:WFG) 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.

West Fraser Timber Co.Ltd's Days Inventory for the three months ended in Mar. 2024 is calculated as:

Days Inventory=Average Total Inventories (Q: Mar. 2024 )/Cost of Goods Sold (Q: Mar. 2024 )*Days in Period
=1256.4495/1513.325*365 / 4
=75.76

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

West Fraser Timber Co.Ltd's Inventory Turnover for the quarter that ended in Mar. 2024 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Mar. 2024 ) / Average Total Inventories (Q: Mar. 2024 )
=1513.325 / 1256.4495
=1.20

* 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.


West Fraser Timber Co.Ltd Inventory-to-Revenue Related Terms

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West Fraser Timber Co.Ltd (TSX:WFG) Business Description

Traded in Other Exchanges
Address
c/o West Fraser Group, 858 Beatty Street, Vancouver, BC, CAN, V6B 1C1
West Fraser Timber is a softwood lumber company that also produces wood panels and pulp products. The company produces its wood products globally, with lumber mills in British Columbia, Alberta, Europe, and the southeastern United States. Following its acquisition of Norbord in 2021, West Fraser is now one of the largest oriented strand board, or OSB, producers in the world.
Executives
Christopher Virostek Senior Officer
Eric Butler Director

West Fraser Timber Co.Ltd (TSX:WFG) Headlines