ConAgra Foods Inc (CAG)

Inventory turnover

		May 26, 2024	Feb 25, 2024	Nov 26, 2023	Aug 27, 2023	May 28, 2023	Feb 26, 2023	Nov 27, 2022	Aug 28, 2022	May 29, 2022	Feb 27, 2022	Nov 28, 2021	Aug 29, 2021	May 30, 2021	Feb 28, 2021	Nov 29, 2020	Aug 30, 2020	May 31, 2020	Feb 23, 2020	Nov 24, 2019	Aug 25, 2019
Cost of revenue (ttm)	US$ in thousands	12,241,200	11,070,800	11,098,800	11,097,400	12,000,500	11,386,000	11,334,900	11,211,200	10,235,200	10,201,700	9,972,100	9,789,200	9,671,900	10,209,900	10,075,300	10,006,400	10,033,800	9,352,300	9,457,600	9,257,400
Inventory	US$ in thousands	2,083,000	2,143,400	2,277,600	2,393,800	2,212,200	2,307,100	2,347,700	2,229,400	1,966,700	1,766,500	1,858,700	1,954,600	1,709,700	1,579,200	1,622,800	1,579,600	1,364,800	1,646,500	1,770,400	1,755,700
Inventory turnover		5.88	5.17	4.87	4.64	5.42	4.94	4.83	5.03	5.20	5.78	5.37	5.01	5.66	6.47	6.21	6.33	7.35	5.68	5.34	5.27

May 26, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $12,241,200K ÷ $2,083,000K
= 5.88

ConAgra Foods Inc's inventory turnover has shown a fluctuating trend over the past several quarters, ranging from a low of 4.64 to a high of 7.35. Inventory turnover measures how many times a company's inventory is sold and replaced over a specific period, indicating efficiency in managing inventory levels.

The company's inventory turnover has generally been above 5, which suggests that ConAgra efficiently manages its inventory by quickly selling and restocking products. A higher inventory turnover ratio indicates better liquidity and operational efficiency.

The upward trend in inventory turnover from 2019 to 2020 could indicate effective inventory management practices or increased demand for ConAgra's products. However, it is important to note the slight decline in inventory turnover in the most recent quarter, which may warrant further monitoring to ensure efficient inventory management practices are being maintained.

Overall, based on the historical inventory turnover data, ConAgra Foods Inc appears to have a solid inventory management strategy in place, as reflected in the consistent turnover ratios above 5. This suggests the company is effectively balancing inventory levels to meet customer demand while avoiding excess or obsolete inventory.