J & J Snack Foods Corp (JJSF)
Inventory turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,289,560 | 1,283,100 | 1,162,510 | 968,340 | 783,611 |
| Inventory | US$ in thousands | 173,141 | 171,539 | 180,473 | 123,160 | 108,923 |
| Inventory turnover | 7.45 | 7.48 | 6.44 | 7.86 | 7.19 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,289,560K ÷ $173,141K
= 7.45
The inventory turnover ratio for J & J Snack Foods Corp has shown fluctuations over the past five years. In the most recent fiscal year ending September 30, 2024, the company's inventory turnover was 7.45, slightly lower than the previous year's ratio of 7.48. This indicates that the company converted its inventory into sales 7.45 times during the year.
It is essential to note that a high inventory turnover ratio generally indicates efficient inventory management and a strong sales performance. However, the slight decrease from the previous year may suggest a small decline in the efficiency of inventory management.
When comparing the current ratio to those of the past years, the inventory turnover ratio for 2024 is still relatively healthy and in line with historical trends. The company has consistently maintained a turnover ratio above 6, reflecting good control over its inventory levels and a consistent ability to convert inventory into sales.
Overall, the analysis of J & J Snack Foods Corp's inventory turnover indicates a generally stable and efficient inventory management performance, albeit with a slight decline in the most recent year. Monitoring this ratio over time and in comparison to industry benchmarks can provide valuable insights into the company's operational efficiency and financial health.