Pilgrims Pride Corp (PPC)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 16,391,010 | 16,649,630 | 16,726,830 | 16,816,130 | 16,802,900 | 16,664,280 | 16,634,730 | 16,545,650 | 16,286,380 | 16,083,640 | 15,666,160 | 15,308,250 | 14,581,740 | 13,671,780 | 12,945,930 | 11,981,940 | 11,857,310 | 11,756,900 | 11,365,810 | 11,132,530 |
| Inventory | US$ in thousands | 1,783,490 | 1,780,920 | 1,806,240 | 1,861,990 | 1,985,400 | 1,996,720 | 2,047,820 | 2,022,110 | 1,990,180 | 1,934,700 | 1,840,460 | 1,709,000 | 1,575,660 | 1,556,820 | 1,530,010 | 1,439,920 | 1,358,790 | 1,328,700 | 1,347,140 | 1,362,360 |
| Inventory turnover | 9.19 | 9.35 | 9.26 | 9.03 | 8.46 | 8.35 | 8.12 | 8.18 | 8.18 | 8.31 | 8.51 | 8.96 | 9.25 | 8.78 | 8.46 | 8.32 | 8.73 | 8.85 | 8.44 | 8.17 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $16,391,010K ÷ $1,783,490K
= 9.19
The inventory turnover ratio for Pilgrims Pride Corp has shown a relatively stable trend over the past years, indicating efficient management of inventory levels. The ratio has ranged between 8.17 and 9.35 during the period from March 31, 2020, to December 31, 2024.
The inventory turnover ratio measures how many times a company sells and replaces its inventory within a specific period. A higher inventory turnover ratio signifies that the company is selling goods quickly and efficiently, which is generally a positive indicator.
Pilgrims Pride Corp's inventory turnover peaked at 9.35 on September 30, 2024, indicating that the company was selling its inventory at a faster rate compared to previous periods. This could suggest effective inventory management practices, such as efficient production planning and timely restocking of inventory.
Overall, the consistent inventory turnover ratios above 8 indicate that Pilgrims Pride Corp has been effectively managing its inventory levels and converting inventory into sales. It is essential for the company to continue monitoring and optimizing its inventory turnover to ensure operational efficiency and profitability in the long term.
Peer comparison
Dec 31, 2024
Dec 31, 2024