J & J Snack Foods Corp (JJSF)
Inventory turnover
| 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 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,289,565 | 1,302,033 | 1,290,017 | 1,281,830 | 1,283,095 | 1,260,326 | 1,236,516 | 1,194,952 | 1,163,691 | 1,097,216 | 1,046,041 | 1,021,022 | 968,675 | 935,599 | 892,776 | 905,769 | 892,101 | 916,650 | 963,006 | 955,303 |
| Inventory | US$ in thousands | 173,141 | 179,696 | 188,709 | 172,724 | 171,539 | 177,620 | 180,721 | 182,642 | 180,473 | 173,948 | 158,991 | 132,724 | 123,160 | 114,822 | 115,590 | 114,882 | 108,923 | 120,564 | 128,090 | 125,789 |
| Inventory turnover | 7.45 | 7.25 | 6.84 | 7.42 | 7.48 | 7.10 | 6.84 | 6.54 | 6.45 | 6.31 | 6.58 | 7.69 | 7.87 | 8.15 | 7.72 | 7.88 | 8.19 | 7.60 | 7.52 | 7.59 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,289,565K ÷ $173,141K
= 7.45
The inventory turnover ratio of J & J Snack Foods Corp has shown fluctuating trends over the periods covered. The ratio measures how efficiently the company manages its inventory by assessing how many times it sells and replaces its inventory in a given period.
The inventory turnover for J & J Snack Foods Corp ranged from a low of 6.31 to a high of 8.19 over the observed periods. Overall, the company maintained an average inventory turnover of approximately 7.43, suggesting that, on average, the company sells and replaces its inventory about 7.43 times within a year.
The upward and downward movements in the inventory turnover ratio highlight changes in the company's inventory management efficiency. A higher ratio indicates faster inventory turnover, which may signify efficient inventory management and effective sales strategies. Conversely, a lower ratio may suggest slower inventory turnover, which could indicate excess inventory levels or potential issues with sales and demand.
It is important for J & J Snack Foods Corp to monitor and analyze its inventory turnover regularly to ensure optimal inventory management practices, minimize carrying costs, and maximize sales potential. Further analysis of the factors influencing fluctuations in the inventory turnover ratio, such as sales performance, demand trends, and supply chain efficiency, can provide valuable insights for strategic decision-making and operational improvements within the company.