Performance Food Group Co (PFGC)
Inventory turnover
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 51,443,900 | 46,006,600 | 27,269,900 | 22,493,400 | 17,505,600 |
| Inventory | US$ in thousands | 3,390,000 | 3,428,600 | 1,839,400 | 1,549,400 | 1,356,900 |
| Inventory turnover | 15.18 | 13.42 | 14.83 | 14.52 | 12.90 |
June 30, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $51,443,900K ÷ $3,390,000K
= 15.18
Performance Food Group Co's inventory turnover has shown a generally consistent and strong trend over the past five years. The company's inventory turnover ratio has been increasing gradually from 12.90 in June 2019 to 15.18 in June 2023. This indicates that the company is efficiently managing its inventory levels and turning over its inventory more frequently.
A higher inventory turnover ratio suggests that the company is selling its inventory quickly, which can help to prevent excess inventory buildup and reduce holding costs. This can also indicate that the company has effective inventory management practices in place, such as accurate demand forecasting and inventory control.
Overall, the improvement in Performance Food Group Co's inventory turnover ratio over the years reflects positively on the company's operational efficiency and effectiveness in managing its inventory.
Peer comparison
Jun 30, 2023