Cal-Maine Foods Inc (CALM)
Inventory turnover
| Jun 1, 2024 | Mar 2, 2024 | Dec 2, 2023 | Sep 2, 2023 | Jun 3, 2023 | Feb 25, 2023 | Nov 26, 2022 | Aug 27, 2022 | May 28, 2022 | Feb 26, 2022 | Nov 27, 2021 | Aug 28, 2021 | May 29, 2021 | Feb 27, 2021 | Nov 28, 2020 | Aug 29, 2020 | May 30, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,016,138 | 2,070,415 | 2,122,776 | 2,155,897 | 2,184,201 | 1,629,266 | 1,474,943 | 1,328,120 | 1,205,287 | 1,205,284 | 1,078,214 | 972,111 | 876,500 | 1,208,280 | 1,192,477 | 1,185,747 | 1,172,021 | 1,108,015 | 1,113,807 | 1,117,165 |
| Inventory | US$ in thousands | 261,782 | 269,244 | 287,270 | 280,801 | 284,418 | 290,869 | 280,582 | 265,754 | 263,316 | 240,087 | 236,201 | 226,470 | 218,375 | 207,739 | 199,262 | 189,222 | 187,216 | 191,421 | 190,968 | 182,396 |
| Inventory turnover | 7.70 | 7.69 | 7.39 | 7.68 | 7.68 | 5.60 | 5.26 | 5.00 | 4.58 | 5.02 | 4.56 | 4.29 | 4.01 | 5.82 | 5.98 | 6.27 | 6.26 | 5.79 | 5.83 | 6.12 |
June 1, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,016,138K ÷ $261,782K
= 7.70
The inventory turnover of Cal-Maine Foods Inc has fluctuated over the past few quarters, ranging from a low of 4.01 to a high of 7.70. Overall, the company has maintained a relatively stable inventory turnover ratio, indicating that Cal-Maine Foods Inc is effectively managing its inventory levels.
A high inventory turnover ratio suggests that the company is efficiently selling its inventory and restocking at a fast pace, which can be indicative of strong sales and good inventory management practices. On the other hand, a low inventory turnover ratio may indicate slow sales or overstocking of inventory, which can lead to increased holding costs and potentially obsolete inventory.
Based on the data provided, it can be observed that the inventory turnover ratio has generally been above 5, indicating that Cal-Maine Foods Inc has been able to efficiently turn over its inventory. However, there have been fluctuations in the ratio, which may warrant further analysis to identify any specific factors influencing inventory turnover in different periods.