ConAgra Foods Inc (CAG)

Inventory turnover

May 31, 2025 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
Cost of revenue (ttm) US$ in thousands 8,609,300 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 10,499,600 10,390,400 10,422,900
Inventory US$ in thousands 2,048,300 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 2,212,200 2,212,200 2,307,100 2,307,100 2,347,700 2,347,700 2,229,400 2,229,400
Inventory turnover 4.20 4.42 5.02 4.85 5.42 5.55 4.61 4.57 4.24 4.17 4.17 4.24 4.66 4.76 4.34 4.31 4.55 4.47 4.66 4.68

May 31, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $8,609,300K ÷ $2,048,300K
= 4.20

The inventory turnover ratio for ConAgra Foods Inc exhibits notable fluctuations over the analyzed period. Starting from August 28, 2022, with a ratio of 4.68, the inventory turnover shows a slight decline through the subsequent months, reaching a low of approximately 4.17 in August and November 2023. This decline indicates a decrease in the company's efficiency in converting inventory into sales during this period, potentially suggesting slower inventory movement or increased inventory holdings.

However, beginning from February 2024, a positive trend emerges, with the ratio increasing to 4.57 on February 25, 2024, and further climbing to 5.55 by May 26, 2024. This upward trend suggests improved inventory management or increased sales velocity, leading to more efficient inventory turnover. After peaking in late May 2024, the ratio experiences a slight decline to 4.85 in August 2024 and maintains a relatively steady level around 5.02 in November 2024.

The data indicates that the company's inventory management efficiency experienced both periods of decline and recovery during these years. The increased ratios observed in early 2024 and mid-2024 reflect enhanced operational efficiency, while the earlier lower ratios could point towards periods of higher inventory levels or slower sales. Overall, ConAgra Foods Inc's inventory turnover ratio demonstrates a cyclical pattern of fluctuation, influenced by seasonality, market conditions, or internal operational factors.