Cracker Barrel Old Country Store (CBRL)

Inventory turnover

		Aug 2, 2024	Jul 28, 2023	Jul 29, 2022	Jul 30, 2021	Jul 31, 2020
Cost of revenue	US$ in thousands	2,694,660	2,611,870	2,446,240	2,079,840	1,954,220
Inventory	US$ in thousands	180,958	189,364	213,249	138,320	139,091
Inventory turnover		14.89	13.79	11.47	15.04	14.05

August 2, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,694,660K ÷ $180,958K
= 14.89

The inventory turnover of Cracker Barrel Old Country Store has shown a fluctuating trend over the past five years, ranging from a low of 11.47 in July 2022 to a high of 15.04 in July 2021. The inventory turnover ratio measures how efficiently the company is managing its inventory by indicating how many times the inventory is sold and replaced within a specific period.

A higher inventory turnover ratio generally indicates that the company is selling its inventory quickly, which can be a positive sign of operational efficiency. Cracker Barrel's inventory turnover ratios for the past five years have been consistently above 10, suggesting that the company has been effectively managing its inventory levels.

The increase in inventory turnover from 13.79 in July 2023 to 14.89 in August 2024 indicates an improvement in the efficiency of inventory management during the most recent year, potentially resulting in lower inventory carrying costs and improved cash flow. However, it is important to consider other factors such as seasonality and industry norms when assessing the significance of changes in inventory turnover.