Freshpet Inc (FRPT)
Inventory turnover
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 607,874 | 585,612 | 579,894 | 563,102 | 541,005 | 520,568 | 495,301 | 467,761 | 437,447 | 408,104 | 362,634 | 321,911 | 293,663 | 263,343 | 242,678 | 224,148 | 204,670 | 185,879 | 167,392 | 154,417 |
| Inventory | US$ in thousands | 82,017 | 80,794 | 72,791 | 73,252 | 71,865 | 63,238 | 59,063 | 65,269 | 66,319 | 58,290 | 64,334 | 60,679 | 45,311 | 35,574 | 29,305 | 24,597 | 21,825 | 19,119 | 17,511 | 18,693 |
| Inventory turnover | 7.41 | 7.25 | 7.97 | 7.69 | 7.53 | 8.23 | 8.39 | 7.17 | 6.60 | 7.00 | 5.64 | 5.31 | 6.48 | 7.40 | 8.28 | 9.11 | 9.38 | 9.72 | 9.56 | 8.26 |
March 31, 2025 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $607,874K ÷ $82,017K
= 7.41
The inventory turnover ratio of Freshpet Inc. demonstrates notable fluctuations over the analyzed period from June 2020 through March 2025. Initially, the ratio increased from 8.26 times in June 2020 to a peak of 9.72 in December 2020, indicating an improvement in the efficiency of inventory management and a faster movement of inventory during that year.
Throughout 2021, the inventory turnover slightly declined but remained relatively high, fluctuating around 9.11 in June 2021 and decreasing to 7.40 by December 2021. The downward trend persisted into 2022, with the ratio reaching a low of 5.31 in June 2022, suggesting a slowdown in inventory turnover, potentially reflecting increased inventory levels or slower sales.
In the latter part of 2022 and into 2023, the ratio demonstrated signs of recovery, rising to 7.00 in December 2022 and further increasing to approximately 6.60 in March 2023. The uptrend continued through 2023 and into 2024, peaking at 8.39 in September 2023, indicative of improved inventory management and sales efficiency.
By the end of 2024, the ratio settled at 7.25, slightly lower than the September 2023 peak but still reflecting a relatively healthy rate of inventory turnover. Through March 2025, the ratio maintained a level of around 7.41, consistent with recent performance.
Overall, the inventory turnover ratio of Freshpet Inc. exhibits periods of both acceleration and slowdown, with an evident recovery phase after a period of decline. The product suggests a company that experienced initial efficiency gains, faced challenges leading to decreased turnover, but then showed signs of operational improvement and better inventory management in the recent periods.
Peer comparison
Mar 31, 2025
Mar 31, 2025