United Natural Foods Inc (UNFI)
Inventory turnover
| Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Aug 1, 2020 | Aug 3, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 26,191,000 | 24,801,000 | 23,055,000 | 22,855,000 | 19,575,100 |
| Inventory | US$ in thousands | 2,292,000 | 2,355,000 | 2,247,000 | 2,282,000 | 2,190,680 |
| Inventory turnover | 11.43 | 10.53 | 10.26 | 10.02 | 8.94 |
July 29, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $26,191,000K ÷ $2,292,000K
= 11.43
United Natural Foods Inc.'s inventory turnover has shown a steadily increasing trend over the past five years, indicating the company's effective management of its inventory. The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a period, highlighting the efficiency of the company in managing its inventory.
In the latest fiscal year, ending on July 29, 2023, United Natural Foods Inc. achieved an inventory turnover of 11.41 times. This suggests that the company sold and replaced its inventory nearly 11.41 times during the year, implying efficient inventory management. This is an improvement from the previous year's ratio of 10.51, indicating an enhanced efficiency in inventory turnover.
The trend of increasing inventory turnover indicates that United Natural Foods Inc. has been successful in reducing excess inventory, minimizing holding costs, and optimizing its working capital. The consistent improvement in this ratio over the past five years signifies that the company has been effectively managing its inventory levels, ensuring that products are sold in a timely manner without excessive accumulation of obsolete stock.
A high inventory turnover ratio is generally favorable as it signifies that the company's products are in high demand and that the inventory is efficiently managed and sold. For United Natural Foods Inc., the increasing trend in inventory turnover demonstrates its ability to effectively move products through its supply chain, which can lead to improved cash flow and profitability.
Overall, the trend of increasing inventory turnover for United Natural Foods Inc. reflects positively on the company's operational efficiency and effective management of its inventory, indicating a healthy and robust supply chain management strategy.
Peer comparison
Jul 29, 2023