The Chefs Warehouse Inc (CHEF)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,700,820 | 3,359,870 | 2,536,260 | 1,755,500 | 1,245,600 |
| Inventory | US$ in thousands | 316,014 | 284,528 | 245,693 | 144,491 | 82,519 |
| Inventory turnover | 11.71 | 11.81 | 10.32 | 12.15 | 15.09 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,700,820K ÷ $316,014K
= 11.71
The inventory turnover ratio for The Chefs Warehouse Inc has shown a declining trend over the past five years. In December 31, 2020, the company had an inventory turnover of 15.09, indicating that its inventory was sold and replaced approximately 15 times during the year. However, by December 31, 2024, the inventory turnover decreased to 11.71, suggesting a slowdown in the rate at which inventory is being turned over.
A higher inventory turnover ratio is generally preferred as it signifies efficient inventory management and quicker sales cycles. The decreasing trend in The Chefs Warehouse Inc's inventory turnover may raise concerns about excess inventory levels or potential issues with demand forecasting and sales performance.
It is important for the company to closely monitor its inventory turnover ratio and take proactive measures to optimize inventory levels, streamline operations, and enhance overall efficiency to improve this ratio in the future.
Peer comparison
Dec 31, 2024