Central Garden & Pet Company (CENT)
Inventory turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,256,720 | 2,363,240 | 2,346,280 | 2,332,780 | 1,898,950 |
| Inventory | US$ in thousands | 757,943 | 838,188 | 938,000 | 685,237 | 439,615 |
| Inventory turnover | 2.98 | 2.82 | 2.50 | 3.40 | 4.32 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,256,720K ÷ $757,943K
= 2.98
The inventory turnover ratio for Central Garden & Pet Company has shown varying trends over the past five years. In 2024, the ratio stood at 2.98, indicating that the company's inventory turnover improved compared to the previous year. This suggests that Central Garden & Pet more efficiently converted its inventory into sales during the year.
The trend in inventory turnover for the company has fluctuated in recent years, with a peak of 4.32 in 2020, followed by a decline in subsequent years. A lower inventory turnover ratio could potentially indicate inefficiencies in managing inventory levels or challenges in selling products effectively.
It is important for Central Garden & Pet Company to continue monitoring and analyzing its inventory turnover ratio to ensure optimal inventory management practices. Strategies to improve inventory turnover could include better demand forecasting, efficient supply chain management, and effective inventory control measures.
Peer comparison
Sep 30, 2024