Pilgrims Pride Corp (PPC)
Inventory turnover
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 10,729,950 | 10,385,510 | 10,407,920 | 10,495,960 |
| Inventory | US$ in thousands | 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 | 1,383,540 | 1,261,360 | 1,186,660 | 1,166,000 |
| Inventory turnover | 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 | 7.76 | 8.23 | 8.77 | 9.00 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $16,802,900K ÷ $1,985,400K
= 8.46
Over the past eight quarters, Pilgrim's Pride Corp. has shown a relatively stable trend in its inventory turnover ratio. The company's inventory turnover ratios have ranged between 7.83 and 8.25, indicating that on average, the company is able to sell and replace its inventory around 8 times a year. This suggests that Pilgrim's Pride has efficient inventory management practices in place as it is able to quickly convert its inventory into sales.
The consistency in the inventory turnover ratios over the quarters indicates a good balance between inventory levels and sales volume. A consistently high inventory turnover ratio can imply efficient inventory management, lower holding costs, and reduced risk of inventory obsolescence.
However, it is essential for the company to continuously monitor and manage its inventory turnover to ensure it remains optimal for the business. Factors such as seasonality, demand fluctuations, and supply chain disruptions can impact inventory turnover, and Pilgrim's Pride should adapt its strategies accordingly to maintain its efficient inventory management practices.
Peer comparison
Dec 31, 2023
Dec 31, 2023