John B Sanfilippo & Son Inc (JBSS)
Inventory turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 852,644 | 788,055 | 756,241 | 673,495 | 704,317 |
| Inventory | US$ in thousands | 196,563 | 172,936 | 204,855 | 147,998 | 172,068 |
| Inventory turnover | 4.34 | 4.56 | 3.69 | 4.55 | 4.09 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $852,644K ÷ $196,563K
= 4.34
The inventory turnover ratio for John B Sanfilippo & Son Inc has fluctuated over the past five years. The ratio was 4.09 in June 2020, increased to 4.55 in June 2021, dropped to 3.69 in June 2022, before rising again to 4.56 in June 2023, and finally settling at 4.34 in June 2024.
The inventory turnover ratio indicates how efficiently the company manages its inventory. A higher inventory turnover ratio suggests that the company is selling its inventory quickly, which is generally seen as a positive sign as it minimizes carrying costs and reduces the risk of obsolete inventory.
In the case of John B Sanfilippo & Son Inc, the company has shown a relatively consistent ability to turn over its inventory in recent years, with ratios consistently above 4. This indicates that the company is effectively managing its inventory levels and selling products at a steady pace.
Overall, a stable and relatively high inventory turnover ratio for John B Sanfilippo & Son Inc suggests efficient inventory management and effective sales strategies.
Peer comparison
Jun 30, 2024