Papa John's International Inc (PZZA)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 273,206 | 290,381 | 292,039 | 270,209 | 278,575 |
| Inventory | US$ in thousands | 36,126 | 41,382 | 34,981 | 30,265 | 27,529 |
| Inventory turnover | 7.56 | 7.02 | 8.35 | 8.93 | 10.12 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $273,206K ÷ $36,126K
= 7.56
The inventory turnover for Papa John`s International, Inc. has been consistently reported as 0.00 for the past five years from 2019 to 2023. This indicates that the company is not effectively managing its inventory levels or is facing challenges in selling its inventory in a timely manner. A low inventory turnover ratio may suggest excess or obsolete inventory, which can tie up the company's financial resources and lead to potential losses. It is crucial for Papa John`s to address this issue to improve operational efficiency and profitability in the long run. Further analysis and strategies to optimize inventory management processes are recommended to enhance the company's performance in the future.
Peer comparison
Dec 31, 2023