Lancaster Colony Corporation (LANC)
Inventory turnover
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,675,191 | 1,707,964 | 1,707,732 | 1,714,133 | 1,686,072 | 1,661,866 | 1,639,282 | 1,599,138 | 1,574,956 | 1,500,378 | 1,407,870 | 1,339,244 | 1,293,875 | 1,228,486 | 1,200,082 | 1,184,490 | 1,163,734 | 1,170,079 | 1,159,158 | 1,155,943 |
| Inventory | US$ in thousands | 173,252 | 161,088 | 158,192 | 177,808 | 158,265 | 154,753 | 139,413 | 165,939 | 144,702 | 166,022 | 155,165 | 158,369 | 121,875 | 103,046 | 109,047 | 110,562 | 85,048 | 96,259 | 90,483 | 94,425 |
| Inventory turnover | 9.67 | 10.60 | 10.80 | 9.64 | 10.65 | 10.74 | 11.76 | 9.64 | 10.88 | 9.04 | 9.07 | 8.46 | 10.62 | 11.92 | 11.01 | 10.71 | 13.68 | 12.16 | 12.81 | 12.24 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,675,191K ÷ $173,252K
= 9.67
Lancaster Colony Corporation's inventory turnover ratio has shown fluctuations over the period under review. The inventory turnover ratio measures how effectively the company is managing its inventory by indicating the number of times inventory is sold and replaced within a specific time period.
The inventory turnover ratio for Lancaster Colony Corporation ranged from a low of 8.46 to a high of 13.68 over the past few years. Generally, a higher inventory turnover ratio is preferred as it signifies that the company is efficiently selling its products and replenishing its inventory. This can result in lower holding costs and better cash flow management.
From the data provided, we see that the inventory turnover ratio has been relatively stable, with some variability in the specific periods. There was a slight decline in the ratio in some quarters, followed by periods of improvement. It is worth noting that the company's inventory turnover was below 10 in several quarters, indicating that inventory may have been held for a longer time before being sold.
Overall, while the inventory turnover ratio for Lancaster Colony Corporation has shown some fluctuations, it appears to be at a reasonably healthy level. The company may benefit from further analysis to identify any factors impacting inventory turnover and to implement strategies to optimize its inventory management processes.
Peer comparison
Jun 30, 2024
Jun 30, 2024