Pilgrims Pride Corp (PPC)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 16,823,600 | 16,303,100 | 14,593,400 | 11,869,600 | 10,741,700 |
| Inventory | US$ in thousands | 1,985,400 | 1,990,180 | 1,575,660 | 1,358,790 | 1,383,540 |
| Inventory turnover | 8.47 | 8.19 | 9.26 | 8.74 | 7.76 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $16,823,600K ÷ $1,985,400K
= 8.47
The inventory turnover of Pilgrim's Pride Corp. has been relatively stable over the past five years, ranging between 7.47 and 8.51 times. This indicates that, on average, the company has been able to convert its inventory into sales between 7.47 and 8.51 times during each year. A higher inventory turnover ratio is generally preferred as it suggests that the company is efficiently managing its inventory levels and able to sell its products quickly.
For Pilgrim's Pride Corp., the average inventory turnover ratio over this period is approximately 8.05 times (calculated as the average of the five years). This indicates that, on average, the company is able to sell and replace its entire inventory about 8 times a year.
Overall, the consistent inventory turnover ratio of Pilgrim's Pride Corp. suggests efficient inventory management and indicates that the company is effectively meeting consumer demand while controlling its inventory levels. However, it is essential to compare this ratio with industry benchmarks to assess how the company's performance measures up against its competitors.
Peer comparison
Dec 31, 2023