ConAgra Foods Inc (CAG)

Inventory turnover

		May 26, 2024	May 28, 2023	May 29, 2022	May 30, 2021	May 31, 2020
Cost of revenue	US$ in thousands	12,276,900	12,005,400	10,466,700	9,837,200	10,246,200
Inventory	US$ in thousands	2,083,000	2,212,200	1,966,700	1,709,700	1,364,800
Inventory turnover		5.89	5.43	5.32	5.75	7.51

May 26, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $12,276,900K ÷ $2,083,000K
= 5.89

ConAgra Foods Inc's inventory turnover has been relatively stable over the past five years, ranging from 5.32 to 7.51. The inventory turnover ratio measures how efficiently the company is managing its inventory by calculating how many times the company sells and replaces its average inventory during a specific period.

A higher inventory turnover ratio indicates that the company is selling its inventory quickly and efficiently, which can be a positive sign of effective inventory management and strong sales. Conversely, a lower inventory turnover ratio may suggest overstocking or slow-moving inventory, leading to potential obsolescence or higher holding costs.

In the case of ConAgra Foods Inc, the inventory turnover ratio has generally been between 5.32 and 7.51, indicating that the company has been able to effectively manage its inventory levels over the years. It suggests that ConAgra Foods has been able to efficiently sell and restock its inventory to meet demand, which can lead to improved cash flow and profitability. Overall, the trend in inventory turnover for ConAgra Foods Inc appears stable and reflective of effective inventory management practices.