Jack In The Box Inc (JACK)

Inventory turnover

		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	Sep 30, 2019	Jul 7, 2019	Apr 14, 2019
Cost of revenue (ttm)	US$ in thousands	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	261,494	342,629	342,584
Inventory	US$ in thousands	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	1,776	1,937	1,949
Inventory turnover		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	147.24	176.89	175.77

January 21, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $834,695K ÷ $4,381K
= 190.53

Based on the information provided for Jack In The Box, Inc., the inventory turnover ratio has consistently remained at 0.00 for the past eight quarters. This suggests that the company is not efficiently managing its inventory levels relative to its sales. A low or zero inventory turnover ratio can indicate overstocking, obsolete inventory, or poor sales performance. This may lead to higher holding costs, potential write-offs, and reduced profitability. It is important for the company to closely monitor and improve its inventory management practices to optimize operational efficiency and financial performance.