Kellanova (K)

Inventory turnover

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	8,839,000	8,977,000	9,135,000	10,327,000	11,124,000	12,025,000	12,897,000	12,499,000	12,456,000	11,617,000	10,670,000	9,887,000	9,043,000	8,899,000	9,043,000	9,050,000	9,197,000	9,290,000	9,211,000	9,087,000
Inventory	US$ in thousands	1,243,000	1,632,000	1,706,000	1,801,000	1,339,000	1,682,000	1,678,000	1,559,000	1,398,000	1,378,000	1,365,000	1,319,000	1,284,000	1,263,000	1,230,000	1,189,000	1,226,000	1,200,000	1,234,000	1,319,000
Inventory turnover		7.11	5.50	5.35	5.73	8.31	7.15	7.69	8.02	8.91	8.43	7.82	7.50	7.04	7.05	7.35	7.61	7.50	7.74	7.46	6.89

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $8,839,000K ÷ $1,243,000K
= 7.11

The inventory turnover ratio for Kellanova has exhibited fluctuations over the past few quarters. The inventory turnover ratio measures how many times a company sells its average inventory balance in a given period.

Looking at the data provided, we can see that Kellanova had an inventory turnover ratio of 7.11 at the end of December 2023. This indicates that Kellanova sold and replaced its inventory approximately 7.11 times during the year.

Comparing this to previous quarters, we see a general trend of variability in the inventory turnover ratio, with some quarters showing higher turnover rates (e.g., 8.31 at the end of December 2022) and others displaying lower turnover rates (e.g., 5.35 at the end of June 2023).

Overall, a high inventory turnover ratio often indicates efficient inventory management, while a low ratio may suggest overstocking or slow-moving inventory. It is important for Kellanova to analyze the reasons behind these fluctuations to optimize inventory levels and improve overall operational efficiency.