Flowers Foods Inc (FLO)

Inventory turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Oct 7, 2023 Sep 30, 2023 Jul 15, 2023 Jun 30, 2023 Apr 22, 2023 Mar 31, 2023 Dec 31, 2022 Oct 8, 2022 Sep 30, 2022 Jun 30, 2022 Apr 23, 2022 Mar 31, 2022 Dec 31, 2021 Oct 9, 2021 Sep 30, 2021
Cost of revenue (ttm) US$ in thousands 2,577,220 2,633,492 3,264,853 3,268,959 3,584,273 3,585,635 3,763,305 3,946,689 3,409,887 2,795,390 2,003,771 1,789,003 2,504,115 3,259,392 3,156,302 3,085,296 2,309,564 2,461,944 2,453,475 3,093,727
Inventory US$ in thousands 262,691 258,948 259,800 264,582 270,883 182,877 266,150 176,042 256,562 185,341 264,567 242,311 166,935 238,832 237,583 148,436 218,810 203,459 132,777 200,943
Inventory turnover 9.81 10.17 12.57 12.36 13.23 19.61 14.14 22.42 13.29 15.08 7.57 7.38 15.00 13.65 13.29 20.79 10.56 12.10 18.48 15.40

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,577,220K ÷ $262,691K
= 9.81

The inventory turnover ratio for Flowers Foods Inc can be analyzed over multiple periods based on the provided data:

1. The inventory turnover indicates how efficiently the company is managing its inventory by showing how many times during a period its inventory is sold and replaced. A higher turnover ratio generally signifies effective inventory management.

2. Based on the data, the inventory turnover ratio ranged from a low of 7.38 on December 31, 2022, to a high of 22.42 on July 15, 2023. The significant fluctuation in the ratio over time suggests varying levels of efficiency in managing inventory during these periods.

3. Notably, there are periods where the inventory turnover ratio surpassed 15, indicating that Flowers Foods Inc sold and replaced its inventory more than 15 times during those specific periods. This can be seen on October 9, 2021, April 23, 2022, April 22, 2023, July 15, 2023, and October 7, 2023.

4. On the other hand, the inventory turnover ratio fell below 10 during certain periods, such as on December 31, 2022, March 31, 2023, December 31, 2023, June 30, 2024, September 30, 2024, and December 31, 2024, indicating potential inefficiencies in inventory management during these times.

5. Overall, while the inventory turnover ratio for Flowers Foods Inc has varied over the provided periods, it is essential for the company to strive for a balance to ensure optimal inventory management efficiency and financial performance. Regular monitoring and analysis of this ratio can help the company make informed decisions regarding its inventory levels and operations.