Performance Food Group Co (PFGC)
Inventory turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 51,704,100 | 50,999,800 | 45,637,700 | 26,873,700 | 22,217,100 |
| Inventory | US$ in thousands | 3,314,700 | 3,390,000 | 3,428,600 | 1,839,400 | 1,549,400 |
| Inventory turnover | 15.60 | 15.04 | 13.31 | 14.61 | 14.34 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $51,704,100K ÷ $3,314,700K
= 15.60
Performance Food Group Co's inventory turnover has shown a consistent trend of improvement over the past five years. The ratio increased from 14.34 times in June 30, 2020, to 15.60 times in June 30, 2024. This indicates that the company has been more efficient in managing its inventory during this period.
The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a specific period. A higher inventory turnover ratio typically signifies effective inventory management, as it indicates that the company is selling its products more frequently and is not overstocked.
Although there was a slight decrease in the inventory turnover ratio in June 30, 2022, compared to the previous years, the overall trend shows an improvement in inventory turnover efficiency. This suggests that Performance Food Group Co has been able to optimize its inventory levels and turn over its inventory more quickly, which could lead to better cash flow and profitability.
It is important for the company to maintain this positive trend in inventory turnover to ensure optimal utilization of resources and to meet demand effectively. Overall, the data reflects a positive performance in managing inventory efficiently over the analyzed period.
Peer comparison
Jun 30, 2024