Performance Food Group Co (PFGC)
Inventory turnover
| Sep 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 | 52,397,000 | 51,935,300 | 51,895,200 | 51,579,500 | 51,443,900 | 51,343,600 | 50,808,200 | 49,955,600 | 46,095,200 | 41,271,000 | 35,884,400 | 30,345,000 | 27,269,900 | 24,107,700 | 23,949,600 | 23,232,500 | 22,493,400 | 22,629,800 | 20,461,300 | 19,098,300 |
| Inventory | US$ in thousands | 3,677,800 | 3,107,000 | 3,342,100 | 3,519,700 | 3,390,000 | 3,247,300 | 3,344,300 | 3,335,000 | 3,428,600 | 3,085,300 | 3,190,900 | 2,864,000 | 1,839,400 | 1,541,800 | 1,477,700 | 1,523,900 | 1,549,400 | 1,803,100 | 1,349,400 | 1,411,200 |
| Inventory turnover | 14.25 | 16.72 | 15.53 | 14.65 | 15.18 | 15.81 | 15.19 | 14.98 | 13.44 | 13.38 | 11.25 | 10.60 | 14.83 | 15.64 | 16.21 | 15.25 | 14.52 | 12.55 | 15.16 | 13.53 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $52,397,000K ÷ $3,677,800K
= 14.25
Performance Food Group Co's inventory turnover has shown fluctuations over the past 20 quarters, ranging from a low of 10.60 to a high of 16.72. The average inventory turnover ratio over this period is approximately 14.56, indicating that on average, the company turns over its inventory about 14.56 times in a year.
The trend in inventory turnover indicates that the company's efficiency in managing its inventory has generally improved over time, with periodic fluctuations. Higher inventory turnover ratios suggest that the company is selling its products more quickly and efficiently, thus reducing the risk of inventory obsolescence and carrying costs. Conversely, lower turnover ratios may indicate overstocking or slower sales.
Overall, a higher inventory turnover ratio is generally preferred as it suggests that the company is effectively managing its inventory levels. However, it is important to consider industry norms and the nature of the business when evaluating inventory turnover ratios.
Peer comparison
Sep 30, 2024
Sep 30, 2024