Central Garden & Pet Company (CENT)
Inventory turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,138,351 | 3,139,487 | 3,093,103 | 3,089,263 | 3,105,825 | 3,113,752 | 3,130,030 | 3,152,565 | 3,135,682 | 3,065,688 | 2,799,520 | 2,447,109 | 2,112,579 | 1,898,951 | 1,811,317 | 1,727,185 | 1,698,723 | 1,678,969 | 1,642,045 | 1,610,633 |
| Inventory | US$ in thousands | 948,398 | 838,188 | 865,496 | 966,900 | 1,024,360 | 938,000 | 882,522 | 888,051 | 844,899 | 685,237 | 626,635 | 672,901 | 574,878 | 439,615 | 425,919 | 517,207 | 556,479 | 466,197 | 464,917 | 517,158 |
| Inventory turnover | 3.31 | 3.75 | 3.57 | 3.20 | 3.03 | 3.32 | 3.55 | 3.55 | 3.71 | 4.47 | 4.47 | 3.64 | 3.67 | 4.32 | 4.25 | 3.34 | 3.05 | 3.60 | 3.53 | 3.11 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,138,351K ÷ $948,398K
= 3.31
Central Garden & Pet Company's inventory turnover has been fluctuating over the past few quarters. The inventory turnover ratio indicates the number of times a company sells and replaces its inventory within a given period. A higher inventory turnover generally signifies efficient inventory management.
In the most recent quarter, the inventory turnover was 3.31 times, which indicates that the company sold and replaced its inventory approximately 3.31 times during the quarter. This was a slight decrease compared to the previous quarter's turnover of 3.75 times.
Looking at the trend over the past year, there have been variations in inventory turnover, with some quarters showing higher turnover rates (e.g., 4.47 in Sep 2021 and Jun 2021) and others lower turnover rates (e.g., 3.03 in Dec 2022). Generally, a consistent and ideally increasing inventory turnover ratio is a positive sign for a company, as it indicates efficient utilization of inventory and potentially better liquidity.
It's important for Central Garden & Pet Company to closely monitor its inventory turnover to ensure optimal inventory management, minimize holding costs, and maximize cash flow from inventory sales. Further analysis and comparison with industry benchmarks can provide additional insights into the company's performance in this aspect.
Peer comparison
Dec 31, 2023
Dec 31, 2023