Cal-Maine Foods Inc (CALM)
Inventory turnover
| May 31, 2025 | Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | Jun 1, 2024 | May 31, 2024 | Mar 2, 2024 | Feb 29, 2024 | Dec 2, 2023 | Nov 30, 2023 | Sep 2, 2023 | Aug 31, 2023 | Jun 3, 2023 | May 31, 2023 | Feb 28, 2023 | Feb 25, 2023 | Nov 30, 2022 | Nov 26, 2022 | Aug 31, 2022 | Aug 27, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,411,000 | 2,339,556 | 2,092,339 | 2,034,305 | 1,980,156 | 1,988,134 | 1,965,885 | 1,891,447 | 1,820,854 | 1,867,153 | 1,925,637 | 1,993,947 | 2,172,992 | 2,101,862 | 2,153,077 | 2,059,464 | 1,960,969 | 1,874,997 | 1,333,240 | 1,278,289 |
| Inventory | US$ in thousands | 295,670 | 307,291 | 299,365 | 293,182 | 261,782 | 261,782 | 269,244 | 269,244 | 287,270 | 287,270 | 280,801 | 280,801 | 284,418 | 284,418 | 290,869 | 290,869 | 280,582 | 280,582 | 265,754 | 265,754 |
| Inventory turnover | 8.15 | 7.61 | 6.99 | 6.94 | 7.56 | 7.59 | 7.30 | 7.03 | 6.34 | 6.50 | 6.86 | 7.10 | 7.64 | 7.39 | 7.40 | 7.08 | 6.99 | 6.68 | 5.02 | 4.81 |
May 31, 2025 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,411,000K ÷ $295,670K
= 8.15
The inventory turnover ratios for Cal-Maine Foods Inc. over the specified time periods demonstrate a pattern of fluctuation with an overall trend indicating a relatively stable and efficient management of inventory.
From August 27, 2022, to November 30, 2022, the ratio increased from 4.81 to 6.99, reflecting an improvement in inventory management and a faster cycle of inventory sales. The subsequent period until March 2, 2024, shows a generally upward trend, with ratios reaching a peak of 7.64 on June 3, 2023, and maintaining high levels until early 2024. This suggests a period of improved inventory turnover, potentially driven by increased sales efficiency or adjustments in inventory practices.
After the peak in mid-2023 and into late 2023, the ratio shows a slight decline, with values around 6.94 on August 31, 2024, and 6.99 on November 30, 2024, indicating a marginal slowdown in inventory turnover. However, this decline remains within a relatively narrow range, implying that inventory management remains reasonably efficient.
Looking forward, the ratios continue to demonstrate an upward trajectory, reaching 7.61 by February 28, 2025, and further increasing to 8.15 by May 31, 2025. This indicates a trend towards even more efficient inventory management, with inventory being turned over more frequently over the most recent periods.
In summary, the inventory turnover of Cal-Maine Foods Inc. has generally improved over time, moving from lower levels around 4.81 to higher levels exceeding 8 in recent periods, reflecting enhanced efficiency in inventory utilization and sales operations. The company has maintained a stable but dynamic inventory turnover ratio, adjusting effectively to market and operational conditions.