Campbell Soup Company Common Stock (CPB)
Inventory turnover
| Jul 31, 2024 | Jul 28, 2024 | Jul 31, 2023 | Jul 30, 2023 | Jul 31, 2022 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 6,665,000 | 8,558,000 | 6,440,000 | 7,951,000 | 5,935,000 |
| Inventory | US$ in thousands | 1,386,000 | 1,386,000 | 1,291,000 | 1,291,000 | 1,246,000 |
| Inventory turnover | 4.81 | 6.17 | 4.99 | 6.16 | 4.76 |
July 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $6,665,000K ÷ $1,386,000K
= 4.81
Based on the provided data, Campbell Soup Company's inventory turnover has shown fluctuations over the past few years. The inventory turnover ratio indicates how efficiently the company is managing its inventory by measuring the number of times the inventory is sold and replaced over a certain period.
In July 2022, the inventory turnover ratio was 4.76, indicating that the company's inventory turned over approximately 4.76 times during that fiscal year. By July 2023, the ratio improved to 6.16, suggesting a more efficient management of inventory. However, there was a slight decrease in efficiency by July 31, 2023, with the turnover ratio dropping to 4.99.
The trend reversed in the following year, as the inventory turnover ratio increased to 6.17 by July 28, 2024. This improvement was short-lived as the ratio dipped to 4.81 by the end of July 31, 2024.
Overall, while there were fluctuations in Campbell Soup Company's inventory turnover ratio, it is essential for investors and stakeholders to monitor these trends to assess the company's inventory management efficiency and potential impact on profitability and working capital management.
Peer comparison
Jul 31, 2024