Central Garden & Pet Company (CENT)
Inventory turnover
| 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 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,069,673 | 3,089,304 | 3,114,031 | 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 |
| Inventory | US$ in thousands | 757,943 | 784,775 | 914,352 | 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 |
| Inventory turnover | 4.05 | 3.94 | 3.41 | 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 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,069,673K ÷ $757,943K
= 4.05
Central Garden & Pet Company's inventory turnover has shown some fluctuations over the past few years. The trend indicates that the company's efficiency in managing its inventory has generally improved.
The inventory turnover ratio measures how many times a company sells and replaces its inventory within a specific period. A higher inventory turnover ratio typically indicates better sales and inventory management practices.
From December 2019 to September 2024, Central Garden & Pet Company's inventory turnover ratio has generally ranged from 3.03 to 4.47. The highest turnover was recorded in December 2021 and September 2021 at 4.47, reflecting efficient management in turning over inventory. On the other hand, the lowest turnover was observed in December 2019 at 3.03.
The average inventory turnover for the period was approximately 3.63. This means that, on average, the company sells and replaces its inventory about 3.63 times per year. Overall, the increasing trend in inventory turnover indicates effective inventory management by Central Garden & Pet Company, leading to a more streamlined supply chain and potentially lower carrying costs.
Peer comparison
Sep 30, 2024
Sep 30, 2024