The Chefs Warehouse Inc (CHEF)
Inventory turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 23, 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 | 3,355,581 | 3,200,476 | 2,978,078 | 2,738,566 | 2,534,815 | 2,318,354 | 2,156,745 | 1,957,848 | 1,754,536 | 1,228,183 | 1,024,763 | 760,089 | 742,761 | 1,041,262 | 1,066,043 | 1,217,886 | 1,199,011 | 1,203,392 | 1,177,588 | 1,149,548 |
| Inventory | US$ in thousands | 284,528 | 312,222 | 291,917 | 274,787 | 245,693 | 190,668 | 181,594 | 152,443 | 144,491 | 132,802 | 122,936 | 91,814 | 82,519 | 98,185 | 96,627 | 129,999 | 124,056 | 122,225 | 122,592 | 113,540 |
| Inventory turnover | 11.79 | 10.25 | 10.20 | 9.97 | 10.32 | 12.16 | 11.88 | 12.84 | 12.14 | 9.25 | 8.34 | 8.28 | 9.00 | 10.61 | 11.03 | 9.37 | 9.67 | 9.85 | 9.61 | 10.12 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,355,581K ÷ $284,528K
= 11.79
The inventory turnover of The Chefs Warehouse Inc has shown some fluctuations over the past several quarters. Generally, the company's inventory turnover ratio has ranged between 8 and 12 times per year. A higher turnover ratio indicates that the company is selling its inventory more frequently, which can be a positive sign of efficient inventory management.
Looking at the trend over the recent quarters, the inventory turnover ratio hit a peak of 12.84 in March 2022 but has since been trending downwards. The latest figure as of December 2023 stands at 11.79, which is still relatively high and suggests solid inventory management practices.
Overall, The Chefs Warehouse Inc appears to be effectively managing its inventory levels, ensuring a healthy balance between stocking enough inventory to meet demand while not overstocking, which could tie up capital and lead to potential losses due to obsolescence. It will be important to continue monitoring the inventory turnover ratio to ensure that the company maintains this optimal balance in the future.
Peer comparison
Dec 31, 2023
Dec 31, 2023