BJs Restaurants Inc (BJRI)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	949,594	940,589	775,858	583,965	810,011
Inventory	US$ in thousands	13,245	11,887	11,579	10,671	11,102
Inventory turnover		71.69	79.13	67.01	54.72	72.96

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $949,594K ÷ $13,245K
= 71.69

The inventory turnover ratio for BJs Restaurants Inc has exhibited fluctuations over the past five years. In 2023, the inventory turnover ratio decreased to 71.69 from the previous year's ratio of 79.13, indicating that the company converted its inventory into sales approximately 71.69 times during the year. The downward trend from 2022 to 2023 suggests a slower rate of inventory turnover, which could be attributed to factors such as changes in demand, production inefficiencies, or improper inventory management.

Comparing the 2023 ratio to earlier years, we see that it is still higher than the ratios in 2020 (54.72) and 2021 (67.01), indicating an improvement in inventory management efficiency. However, it is lower than the relatively high ratio recorded in 2019 (72.96). Overall, the fluctuating trend in inventory turnover implies variations in BJs Restaurants Inc's ability to efficiently manage its inventory levels and convert them into sales in recent years.