Campbell Soup Company Common Stock (CPB)

Inventory turnover

		Jul 28, 2024	Apr 28, 2024	Jan 28, 2024	Oct 29, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Nov 1, 2020	Aug 2, 2020	Apr 26, 2020	Jan 26, 2020	Oct 27, 2019
Cost of revenue (ttm)	US$ in thousands	8,558,000	8,116,000	7,970,000	7,969,000	7,951,000	7,993,000	7,856,000	7,606,000	7,320,000	6,959,000	6,838,000	6,837,000	6,868,000	6,792,000	6,560,000	6,114,000	5,692,000	5,505,000	5,337,000	5,383,000
Inventory	US$ in thousands	1,386,000	1,300,000	1,188,000	1,340,000	1,291,000	1,280,000	1,251,000	1,361,000	1,246,000	1,044,000	911,000	974,000	933,000	860,000	815,000	910,000	871,000	731,000	779,000	887,000
Inventory turnover		6.17	6.24	6.71	5.95	6.16	6.24	6.28	5.59	5.87	6.67	7.51	7.02	7.36	7.90	8.05	6.72	6.54	7.53	6.85	6.07

July 28, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $8,558,000K ÷ $1,386,000K
= 6.17

The inventory turnover ratio for Campbell Soup Company Common Stock has been relatively stable over the past few quarters, ranging between 5.59 and 8.05 times. This indicates that, on average, the company is able to sell and replace its inventory between 5.59 and 8.05 times a year.

A consistent or increasing inventory turnover ratio suggests efficient inventory management, as the company is able to sell its products quickly and replenish its stock effectively. However, a decreasing ratio may indicate overstocking or slow-moving inventory, which can tie up valuable resources and lead to potential obsolescence risks.

Overall, the inventory turnover ratio for Campbell Soup Company Common Stock appears healthy and suggests effective management of inventory levels. It is important for investors to monitor trends in this ratio to assess operational efficiency and potential liquidity risks.