American Eagle Outfitters Inc (AEO)

Inventory turnover

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Feb 3, 2024	Jan 31, 2024	Oct 31, 2023	Oct 28, 2023	Jul 31, 2023	Jul 29, 2023	Apr 30, 2023	Apr 29, 2023	Jan 31, 2023	Jan 28, 2023	Oct 31, 2022	Oct 29, 2022	Jul 31, 2022	Jul 30, 2022	Apr 30, 2022	Jan 31, 2022
Cost of revenue (ttm)	US$ in thousands	3,292,630	3,992,030	4,351,720	4,316,816	4,802,928	3,845,931	3,905,461	3,815,950	3,695,660	3,936,453	4,251,773	4,344,836	4,441,016	4,328,638	4,085,198	3,991,399	3,816,109	4,471,951	3,927,935	4,383,514
Inventory	US$ in thousands	636,655	804,256	663,659	681,062	640,662	640,662	769,315	769,315	636,972	636,972	624,851	624,851	585,083	585,083	797,731	797,731	687,046	687,046	682,100	553,458
Inventory turnover		5.17	4.96	6.56	6.34	7.50	6.00	5.08	4.96	5.80	6.18	6.80	6.95	7.59	7.40	5.12	5.00	5.55	6.51	5.76	7.92

January 31, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,292,630K ÷ $636,655K
= 5.17

The inventory turnover ratio for American Eagle Outfitters Inc has fluctuated over the past few years based on the provided data. The inventory turnover ratio measures the efficiency of the company in managing its inventory by assessing how many times the company sells and replaces its inventory within a given period.

Based on the data provided, the inventory turnover ratio for American Eagle Outfitters Inc ranged from a low of 4.96 to a high of 7.92. A high inventory turnover ratio indicates that the company is selling its inventory quickly and efficiently, while a low ratio may suggest slow inventory turnover or potential inventory management issues.

It is important to note that a consistently high inventory turnover ratio may indicate efficient inventory management practices, such as accurate demand forecasting and effective inventory controls. On the other hand, a consistently low inventory turnover ratio may signal excess inventory levels, slow sales, or pricing issues.

Analyzing the trend of the inventory turnover ratio over time can provide insights into the company's inventory management effectiveness, demand forecasting accuracy, and overall operational efficiency. This information can be valuable for stakeholders, investors, and management in assessing the company's performance and future prospects in the retail industry.