The Chefs Warehouse Inc (CHEF)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,359,870 | 2,536,260 | 1,755,500 | 1,245,600 | 1,200,620 |
| Inventory | US$ in thousands | 284,528 | 245,693 | 144,491 | 82,519 | 124,056 |
| Inventory turnover | 11.81 | 10.32 | 12.15 | 15.09 | 9.68 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,359,870K ÷ $284,528K
= 11.81
The inventory turnover ratio for The Chefs Warehouse Inc has fluctuated over the past five years. In 2023, the company's inventory turnover was 11.81, indicating that it turned over its inventory approximately 11.81 times during the year. This represents an increase compared to the previous year (10.32 in 2022) but a decrease from 2020 (15.09) and 2021 (12.15). The ratio in 2019 was the lowest at 9.68.
A higher inventory turnover ratio generally indicates that the company is efficiently managing its inventory by quickly selling and restocking its products. It suggests that the company is effectively balancing its inventory levels to meet customer demand without excess stock.
The fluctuation in inventory turnover ratios over the years may be attributed to changes in demand, seasonality, purchasing practices, or inventory management strategies. It is essential for management to monitor and analyze inventory turnover ratios to optimize inventory levels and maintain operational efficiency.
Peer comparison
Dec 31, 2023