Flowers Foods Inc (FLO)

Inventory turnover

		Dec 31, 2023	Oct 7, 2023	Jul 15, 2023	Apr 22, 2023	Dec 31, 2022	Oct 8, 2022	Apr 23, 2022	Dec 31, 2021	Oct 9, 2021	Jul 17, 2021	Apr 24, 2021	Dec 31, 2020	Sep 30, 2020	Jul 11, 2020	Apr 18, 2020	Dec 31, 2019	Oct 5, 2019	Jul 13, 2019	Apr 20, 2019	Dec 31, 2018
Cost of revenue (ttm)	US$ in thousands	4,782,430	4,738,771	3,520,801	3,699,111	2,291,471	1,817,088	2,724,745	2,589,265	3,112,542	3,095,123	2,180,066	2,229,586	2,192,669	2,204,066	2,708,418	1,990,384	1,505,572	997,446	489,929	468,875
Inventory	US$ in thousands	184,497	182,877	176,042	185,341	168,697	166,935	148,436	134,980	132,777	126,843	128,120	125,229	128,343	125,311	135,944	127,059	130,392	123,111	124,313	122,623
Inventory turnover		25.92	25.91	20.00	19.96	13.58	10.89	18.36	19.18	23.44	24.40	17.02	17.80	17.08	17.59	19.92	15.67	11.55	8.10	3.94	3.82

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,782,430K ÷ $184,497K
= 25.92

Flowers Foods Inc's inventory turnover has shown fluctuating trends over the past few years. The inventory turnover, which represents how many times a company sells and replaces its inventory during a certain period, has generally been on an upward trajectory.

The inventory turnover ratio has significantly improved from 3.82 in December 2018 to 25.92 in December 2023. This indicates that Flowers Foods has been managing its inventory more efficiently, selling its products more quickly, and replenishing its inventory at a faster pace.

However, there have been periods of slight decline or stagnation in inventory turnover, such as the drop from 19.92 in April 2020 to 15.67 in July 2020. It is worth noting that despite these fluctuations, the overall trend has been positive for Flowers Foods Inc.

The consistent improvement in inventory turnover suggests that the company has been effective in optimizing its inventory management practices, which can lead to cost savings, better cash flow management, and improved overall operational efficiency.