ConAgra Foods Inc (CAG)

Inventory turnover

		Feb 28, 2025	Nov 30, 2024	Aug 31, 2024	May 31, 2024	May 26, 2024	Feb 29, 2024	Feb 25, 2024	Nov 30, 2023	Nov 26, 2023	Aug 31, 2023	Aug 27, 2023	May 31, 2023	May 28, 2023	Feb 28, 2023	Feb 26, 2023	Nov 30, 2022	Nov 27, 2022	Aug 31, 2022	Aug 28, 2022	May 31, 2022
Cost of revenue (ttm)	US$ in thousands	8,635,700	10,952,600	10,778,300	11,299,000	11,559,500	9,885,200	9,792,000	9,659,700	9,488,100	9,992,000	10,158,800	10,319,100	10,519,800	10,014,500	9,950,800	10,693,600	10,500,600	10,391,400	10,423,900	9,630,000
Inventory	US$ in thousands	1,954,500	2,180,800	2,220,600	2,083,000	2,083,000	2,143,400	2,143,400	2,277,600	2,277,600	2,393,800	2,393,800	2,232,000	2,212,200	2,307,100	2,307,100	2,347,700	2,347,700	2,229,400	2,229,400	1,939,700
Inventory turnover		4.42	5.02	4.85	5.42	5.55	4.61	4.57	4.24	4.17	4.17	4.24	4.62	4.76	4.34	4.31	4.55	4.47	4.66	4.68	4.96

February 28, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $8,635,700K ÷ $1,954,500K
= 4.42

Based on the data provided, the inventory turnover of ConAgra Foods Inc has fluctuated over the periods given.

The inventory turnover ratio measures how efficiently a company is managing its inventory. A higher turnover ratio typically indicates that the company is selling its inventory quickly and efficiently.

ConAgra Foods Inc's inventory turnover ratio ranged from a low of 4.17 to a high of 5.55 during the periods listed. The average inventory turnover ratio is around 4.60 over the mentioned time frame.

The inventory turnover peaked at 5.55 on May 26, 2024, indicating that the company sold its inventory over 5 times during that period. This high turnover could suggest effective inventory management and faster sales.

On the other hand, the lowest inventory turnover was recorded at 4.17 on multiple occasions, such as August 31, 2023, and November 26, 2023, signaling a relatively slower movement of inventory during those periods.

A consistent or increasing inventory turnover ratio generally reflects positively on a company's performance, indicating better sales and operations management. However, a low or decreasing turnover ratio may indicate excess inventory levels or potential issues with sales.

Overall, ConAgra Foods Inc's inventory turnover shows some variability but generally remains within a reasonable range, reflecting fluctuations in sales and inventory management practices over the reported periods.