SpartanNash Co (SPTN)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 8,243,660 | 8,145,620 | 7,527,160 | 7,923,520 | 7,292,240 |
| Inventory | US$ in thousands | 575,226 | 571,065 | 522,324 | 541,785 | 537,212 |
| Inventory turnover | 14.33 | 14.26 | 14.41 | 14.62 | 13.57 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $8,243,660K ÷ $575,226K
= 14.33
Inventory turnover for SpartanNash Co has been consistently high over the past five years, ranging from 13.57 to 14.62 times. This indicates that the company efficiently manages its inventory by selling and replenishing it multiple times throughout the year. A high inventory turnover ratio is generally considered positive as it suggests that the company is effectively converting its inventory into sales.
The slight fluctuations in the inventory turnover ratio from year to year are not significant and could be attributed to various factors such as changes in sales volume, procurement strategies, or seasonal fluctuations in demand. Overall, SpartanNash Co's ability to quickly sell and replace its inventory demonstrates effective inventory management practices, which can help reduce carrying costs and maximize profitability.
Peer comparison
Dec 31, 2023