Simply Good Foods Co (SMPL)

Inventory turnover

		Aug 31, 2024	May 25, 2024	Feb 24, 2024	Nov 25, 2023	Aug 26, 2023	May 27, 2023	Feb 25, 2023	Nov 26, 2022	Aug 27, 2022	May 28, 2022	Feb 26, 2022	Nov 27, 2021	Aug 28, 2021	May 29, 2021	Feb 27, 2021	Nov 28, 2020	Aug 29, 2020	May 30, 2020	Feb 29, 2020	Nov 30, 2019
Cost of revenue (ttm)	US$ in thousands	819,755	813,155	807,759	797,722	789,877	759,955	754,692	755,448	730,187	721,829	684,053	630,752	599,588	755,854	654,781	594,954	492,313	438,140	394,476	326,914
Inventory	US$ in thousands	142,107	105,921	115,785	123,175	116,591	105,437	114,008	124,119	125,479	111,709	120,937	112,433	97,269	78,579	82,771	76,067	59,085	84,517	79,552	90,378
Inventory turnover		5.77	7.68	6.98	6.48	6.77	7.21	6.62	6.09	5.82	6.46	5.66	5.61	6.16	9.62	7.91	7.82	8.33	5.18	4.96	3.62

August 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $819,755K ÷ $142,107K
= 5.77

Simply Good Foods Co's inventory turnover has shown variability over the past several periods, ranging from a low of 3.62 to a high of 9.62. The average inventory turnover for the periods provided is approximately 6.65. This indicates that, on average, Simply Good Foods Co is able to sell and replace its inventory approximately 6.65 times within a year.

A higher inventory turnover ratio suggests that the company is efficiently managing its inventory and selling products quickly, while a lower ratio may indicate excess inventory levels or slower sales.

It is important to monitor inventory turnover trends over time to assess the company's operational efficiency, inventory management practices, and overall financial health.