Central Garden & Pet Company (CENT)
Inventory turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,363,240 | 2,346,280 | 2,332,780 | 1,898,950 | 1,678,960 |
| Inventory | US$ in thousands | 838,188 | 938,000 | 685,237 | 439,615 | 466,197 |
| Inventory turnover | 2.82 | 2.50 | 3.40 | 4.32 | 3.60 |
September 30, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,363,240K ÷ $838,188K
= 2.82
Central Garden & Pet Co.'s inventory turnover has fluctuated over the past five years. The inventory turnover ratio indicates the company's efficiency in managing its inventory levels and can provide insights into its operations and sales cycle. The decreasing trend from 2019 to 2022 suggests a potentially slower sales turnover relative to the cost of goods sold, which could indicate overstocking or declining sales. However, the slight increase in 2023 indicates some improvement in inventory management efficiency. Further analysis and comparison with industry averages may provide additional context for the company's performance in this area.
Peer comparison
Sep 30, 2023