WK Kellogg Co (KLG)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | ||
|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,599,000 | 2,611,000 | 2,591,000 |
| Inventory | US$ in thousands | 353,000 | 339,000 | 360,000 |
| Inventory turnover | 7.36 | 7.70 | 7.20 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,599,000K ÷ $353,000K
= 7.36
WK Kellogg Co's inventory turnover for the period covered shows a relatively stable trend with values of 7.20, 7.70, and 7.36 for June 30, 2024; September 30, 2024; and December 31, 2024, respectively. The inventory turnover ratio indicates how effectively the company is managing its inventory. A higher inventory turnover suggests that the company is selling its products more efficiently and quickly, which is generally favorable as it reduces carrying costs and the risk of obsolescence.
The slight fluctuations in the inventory turnover ratios may indicate variability in sales volume or changes in inventory management practices. It is essential for the company to monitor this ratio consistently to ensure optimal inventory levels that support sales without leading to stockouts or excess inventory. Overall, WK Kellogg Co's inventory turnover ratios reflect a healthy balance in managing inventory levels and sales volume.
Peer comparison
Dec 31, 2024
Dec 31, 2024