CAVA Group, Inc. (CAVA)

Inventory turnover

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022
Cost of revenue (ttm) US$ in thousands 789,764 752,963 726,643 688,067 641,371 595,787 563,193 514,711 495,795 480,103 476,279
Inventory US$ in thousands 7,280 7,600 7,335 7,195 6,304 5,637 5,726 5,357 4,340 5,139 5,139
Inventory turnover 108.48 99.07 99.07 95.63 101.74 105.69 98.36 96.08 114.24 93.42 92.68

March 31, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $789,764K ÷ $7,280K
= 108.48

The inventory turnover ratio for CAVA Group, Inc. demonstrates notable fluctuations over the provided periods, indicating changes in inventory management efficiency and sales activity. Starting from September 30, 2022, the ratio was 92.68, which slightly increased to 93.42 by December 31, 2022, suggesting a marginal improvement in how efficiently inventory was converted into sales during that interval.

A more significant rise occurred by March 31, 2023, with the ratio reaching 114.24, reflecting a substantial enhancement in inventory turnover possibly driven by increased sales volume or improved inventory management practices. Subsequently, the ratio dropped to 96.08 by June 30, 2023, indicating a decrease in efficiency, perhaps due to increased inventory levels or slower sales during that quarter.

By September 30, 2023, the ratio recovered slightly to 98.36, maintaining a relatively high turnover. The upward trend resumed by December 31, 2023, reaching 105.69, which suggests sustained improvement in inventory utilization. The ratio continued to increase slightly to 101.74 by March 31, 2024, and then declined again to 95.63 by June 30, 2024, perhaps reflecting seasonal or operational adjustments.

As of September 30, 2024, the ratio stood at 99.07, maintaining stability over that period, with the same ratio persisting through December 31, 2024. The most recent data point from March 31, 2025, shows an increase to 108.48, indicating a significant improvement in inventory turnover, possibly due to enhanced sales performance or more efficient inventory management strategies.

Overall, the trend reveals periods of both acceleration and deceleration in inventory turnover, with recent figures suggesting a positive trajectory in operational efficiency as of the latest reporting date.