American Eagle Outfitters Inc (AEO)
Inventory turnover
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,239,720 | 5,209,160 | 3,237,190 | 3,244,580 | 5,016,660 |
| Inventory | US$ in thousands | 636,655 | 640,662 | 640,662 | 585,083 | 585,083 |
| Inventory turnover | 5.09 | 8.13 | 5.05 | 5.55 | 8.57 |
January 31, 2025 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,239,720K ÷ $636,655K
= 5.09
American Eagle Outfitters Inc's inventory turnover has fluctuated over the past five reporting periods, ranging from a high of 8.57 to a low of 5.05. The inventory turnover ratio measures how efficiently the company is managing its inventory by indicating how many times the company sells and replaces its inventory within a given time period.
A higher inventory turnover ratio generally indicates that the company is selling its inventory quickly, which can be a positive sign of efficient inventory management. On the other hand, a lower ratio may suggest slower inventory turnover, potentially leading to higher inventory holding costs or obsolescence risks.
In this case, the company experienced a significant increase in inventory turnover in February 2024 (8.13), indicating a period of improved efficiency in managing inventory. However, the ratio decreased to 5.09 by January 31, 2025, which might indicate a slower pace of inventory turnover compared to the previous periods.
Overall, American Eagle Outfitters Inc's inventory turnover ratios show variability, and it would be important to monitor this metric over time to assess the effectiveness of the company's inventory management practices and potential impact on its financial performance.
Peer comparison
Jan 31, 2025