Central Garden & Pet Company A (CENTA)
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
The inventory turnover ratio for Central Garden & Pet Co. has fluctuated over the past five years. In 2023, the ratio is 2.82, indicating that the company's inventory turned over approximately 2.82 times during the year. This represents an increase from the previous year's ratio of 2.50. However, the current ratio is lower than the ratios reported in 2020 and 2019, suggesting a potential inefficiency in managing inventory in 2023 compared to those years. A lower turnover ratio may indicate excess inventory or slow-moving stock, which could tie up working capital and increase carrying costs. Further analysis of the company's inventory management practices and supply chain efficiency may be warranted to address this fluctuation.
Peer comparison
Sep 30, 2023