Calavo Growers Inc (CVGW)
Inventory turnover
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 977,292 | 1,188,600 | 1,062,700 | 1,066,850 | 1,127,510 |
| Inventory | US$ in thousands | 31,571 | 38,830 | 40,757 | 41,787 | 36,889 |
| Inventory turnover | 30.96 | 30.61 | 26.07 | 25.53 | 30.56 |
October 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $977,292K ÷ $31,571K
= 30.96
The inventory turnover ratio indicates how efficiently a company is managing its inventory by measuring the number of times the inventory is sold and replaced over a specific period. A higher turnover ratio generally indicates more efficient inventory management.
Calavo Growers, Inc's inventory turnover has fluctuated over the past five fiscal years. In 2023, the inventory turnover ratio was 22.88, which indicates a decrease compared to the previous year's ratio of 28.77. This suggests a potential slowing down in the company's inventory management efficiency. However, it is important to note that a high turnover ratio may also indicate a shortage of inventory, potentially leading to lost sales opportunities.
Despite the fluctuation, Calavo Growers, Inc has generally maintained a relatively high inventory turnover ratio over the last five years, which suggests efficient management of its inventory. However, a deeper analysis in conjunction with other financial metrics such as sales growth and gross margins would provide a more comprehensive understanding of the company's overall operational efficiency and financial performance.