Bath & Body Works Inc. (BBWI)
Inventory turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 6,152,000 | 6,184,000 | 5,873,000 | 10,524,000 | 12,919,000 |
| Inventory | US$ in thousands | 710,000 | 709,000 | 709,000 | 572,000 | 1,287,000 |
| Inventory turnover | 8.66 | 8.72 | 8.28 | 18.40 | 10.04 |
February 3, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $6,152,000K ÷ $710,000K
= 8.66
Over the past five years, Bath & Body Works Inc.'s inventory turnover ratio has fluctuated, ranging from 8.28 to 18.40. A higher inventory turnover ratio indicates the company is selling its inventory more efficiently. In this case, Bath & Body Works Inc. maintained a relatively consistent inventory turnover ratio in the range of 8.28 to 10.04 between 2020 and 2023. However, there was a significant increase in the inventory turnover ratio to 18.40 in 2021, suggesting a substantial improvement in inventory management efficiency that year. The subsequent slight decrease to 8.72 in 2023 and 8.66 in 2024 indicates a return to previous levels of inventory turnover. It would be important for stakeholders of Bath & Body Works Inc. to further investigate the reasons behind the fluctuation in inventory turnover to assess the effectiveness of the company's inventory management practices.
Peer comparison
Feb 3, 2024