Jack In The Box Inc (JACK)

Inventory turnover

		Sep 30, 2024	Jul 7, 2024	Apr 14, 2024	Jan 21, 2024	Sep 30, 2023	Jul 9, 2023	Apr 16, 2023	Jan 22, 2023	Sep 30, 2022	Jul 10, 2022	Apr 17, 2022	Jan 23, 2022	Sep 30, 2021	Jun 30, 2021	Apr 11, 2021	Jan 17, 2021	Sep 30, 2020	Jul 5, 2020	Apr 12, 2020	Jan 19, 2020
Cost of revenue (ttm)	US$ in thousands	734,808	776,096	809,094	834,695	873,414	873,088	884,892	847,338	727,375	554,165	451,303	394,073	379,230	355,720	342,717	272,737	253,086	136,211	156,009	229,821
Inventory	US$ in thousands	3,922	4,160	4,067	4,381	3,896	4,606	5,287	5,070	5,264	5,704	5,845	2,686	2,335	2,120	2,158	2,003	1,808	1,835	1,821	2,029
Inventory turnover		187.36	186.56	198.94	190.53	224.18	189.55	167.37	167.13	138.18	97.15	77.21	146.71	162.41	167.79	158.81	136.16	139.98	74.23	85.67	113.27

September 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $734,808K ÷ $3,922K
= 187.36

Jack In The Box Inc has shown a fluctuating pattern in its inventory turnover ratio over the past few quarters. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times the inventory is sold and replaced within a specific period.

From January 2020 to September 2020, the inventory turnover ratio remained relatively low, indicating that the company was not turning over its inventory as quickly as desired. However, starting from the end of 2020 and throughout 2021, the ratio significantly improved, reaching its peak in September 2023 at 224.18. This suggests that Jack In The Box Inc was managing its inventory more efficiently during this period.

Subsequently, the inventory turnover ratio decreased in the following quarters but remained relatively high compared to the earlier periods. The ratio then increased again in April 2024, showing a strong performance in managing its inventory efficiently.

Overall, the trend in the inventory turnover ratio for Jack In The Box Inc indicates improvements in inventory management efficiency, with some fluctuations observed over the quarters. This suggests that the company has been successful in optimizing its inventory levels and sales operations during the analyzed period.