Pilgrims Pride Corp (PPC)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 16,433,800 | 16,823,600 | 16,303,100 | 14,593,400 | 11,869,600 |
| Inventory | US$ in thousands | 1,783,490 | 1,985,400 | 1,990,180 | 1,575,660 | 1,358,790 |
| Inventory turnover | 9.21 | 8.47 | 8.19 | 9.26 | 8.74 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $16,433,800K ÷ $1,783,490K
= 9.21
Pilgrims Pride Corp's inventory turnover has shown fluctuations over the past five years. The inventory turnover ratio indicates how efficiently the company manages its inventory by measuring the number of times its inventory is sold and replaced within a specific period.
In 2020, the inventory turnover ratio was 8.74, indicating that the company turned over its inventory approximately 8.74 times during that year. The ratio increased to 9.26 in 2021, suggesting an improvement in inventory management efficiency. However, in 2022, the ratio decreased to 8.19, reflecting a potential slowdown in inventory turnover.
Despite the dip in 2022, the inventory turnover ratio rebounded to 8.47 in 2023, showing a slight improvement. In the most recent year, 2024, the ratio increased significantly to 9.21, indicating that Pilgrims Pride Corp was able to sell and replace its inventory more rapidly.
Overall, Pilgrims Pride Corp has demonstrated varying levels of efficiency in managing its inventory over the past five years. The company should continue to monitor and optimize its inventory turnover to ensure effective utilization of its resources and maintain healthy liquidity levels.
Peer comparison
Dec 31, 2024