Papa John's International Inc (PZZA)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	1,478,430	1,478,640	1,711,560	1,639,100	1,469,030
Inventory	US$ in thousands	35,245	36,126	41,382	34,981	30,265
Inventory turnover		41.95	40.93	41.36	46.86	48.54

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,478,430K ÷ $35,245K
= 41.95

Papa John's International Inc's inventory turnover has shown a decreasing trend over the years based on the data provided. In December 31, 2020, the inventory turnover was 48.54, indicating that the company sold and replaced its inventory 48.54 times during that year. The ratio decreased to 46.86 by December 31, 2021, and continued declining to 41.36 by December 31, 2022, 40.93 by December 31, 2023, and 41.95 by December 31, 2024.

This declining trend in inventory turnover could suggest that the company is managing its inventory less efficiently over time. A decreasing inventory turnover ratio may indicate overstocking, obsolete inventory, or slowing sales, which could potentially lead to higher holding costs and lower profitability. It's important for Papa John's International Inc to closely monitor and address factors impacting inventory turnover to optimize its inventory management practices and improve overall operational efficiency.