Bath & Body Works Inc. (BBWI)
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 | 4,074,000 | 4,812,000 | 5,478,000 | 5,458,000 | 6,021,000 | 4,734,000 | 4,529,000 | 4,449,000 | 4,323,000 | 5,025,000 | 5,890,000 | 6,016,000 | 6,203,000 | 5,522,000 | 4,662,000 | 4,517,000 | 4,697,000 | 3,748,000 | 3,214,000 | 3,705,000 |
| Inventory | US$ in thousands | 734,000 | 1,178,000 | 863,000 | 814,000 | 710,000 | 710,000 | 1,205,000 | 1,205,000 | 818,000 | 818,000 | 771,000 | 771,000 | 709,000 | 709,000 | 1,269,000 | 1,269,000 | 971,000 | 971,000 | 820,000 | 709,000 |
| Inventory turnover | 5.55 | 4.08 | 6.35 | 6.71 | 8.48 | 6.67 | 3.76 | 3.69 | 5.28 | 6.14 | 7.64 | 7.80 | 8.75 | 7.79 | 3.67 | 3.56 | 4.84 | 3.86 | 3.92 | 5.23 |
January 31, 2025 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,074,000K ÷ $734,000K
= 5.55
Bath & Body Works Inc.'s inventory turnover ratio indicates how efficiently the company manages its inventory by measuring the number of times inventory is sold and replaced during a specific period. A higher inventory turnover ratio is generally preferred as it signifies that the company is selling its products quickly.
The inventory turnover for Bath & Body Works Inc. fluctuated over the analyzed period. The ratios ranged from a low of 3.56 in October 2022 to a high of 8.75 in January 31, 2023. A noticeable increase in efficiency was observed in early 2023, with inventory turnover exceeding 7 times, indicating the company was selling and replenishing inventory at a rapid pace.
However, the inventory turnover decreased consistently after the peak in early 2023, with the ratio reaching its lowest point of 3.69 in October 2023. This decline may suggest potential issues related to inventory management, such as overstocking or slow sales.
In the latest period analyzed (January 31, 2025), the inventory turnover ratio stood at 5.55, indicating a moderate efficiency level in managing inventory. It is essential for Bath & Body Works Inc. to closely monitor its inventory turnover to ensure optimal inventory levels, minimize carrying costs, and maintain profitability.
Peer comparison
Jan 31, 2025
Jan 31, 2025