Calavo Growers Inc (CVGW)
Inventory turnover
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 877,768 | 977,292 | 974,244 | 1,061,742 | 1,140,296 | 1,188,689 | 1,237,347 | 1,186,685 | 1,128,307 | 1,068,702 | 1,002,722 | 1,003,672 | 1,009,614 | 1,066,757 | 1,121,508 | 1,168,882 | 1,160,092 | 1,127,507 | 1,118,014 | 1,057,404 |
| Inventory | US$ in thousands | 39,551 | 31,571 | 38,878 | 42,818 | 44,092 | 38,830 | 36,073 | 53,617 | 52,402 | 40,757 | 47,443 | 53,335 | 41,706 | 41,787 | 43,944 | 46,908 | 42,237 | 36,889 | 46,340 | 49,616 |
| Inventory turnover | 22.19 | 30.96 | 25.06 | 24.80 | 25.86 | 30.61 | 34.30 | 22.13 | 21.53 | 26.22 | 21.14 | 18.82 | 24.21 | 25.53 | 25.52 | 24.92 | 27.47 | 30.56 | 24.13 | 21.31 |
January 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $877,768K ÷ $39,551K
= 22.19
The inventory turnover ratio for Calavo Growers Inc has shown fluctuations over the past several quarters. The ratio indicates how many times the company's inventory is sold and replaced over a certain period. A higher turnover ratio typically suggests that the company is efficiently managing its inventory.
In analyzing the data provided, we observe that the inventory turnover ratio has ranged from a low of 18.82 to a high of 34.30 over the past 20 quarters. Overall, the company's inventory turnover has shown a somewhat volatile pattern with occasional peaks and troughs.
The highest inventory turnover ratio of 34.30 was recorded in the July 31, 2022, quarter, indicating a strong ability to sell through inventory quickly during that period. Conversely, the lowest ratio of 18.82 was reported in the April 30, 2021, quarter, suggesting a slower inventory turnover rate at that point in time.
It is important for investors and stakeholders to monitor the inventory turnover ratio consistently to assess the company's inventory management efficiency and its ability to convert inventory into sales promptly. Additionally, understanding the reasons behind the fluctuations in the ratio can provide insights into the company's operational performance and overall financial health.