Bath & Body Works Inc. (BBWI)
Inventory turnover
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 6,151,000 | 6,163,000 | 6,224,000 | 6,229,000 | 6,184,000 | 3,957,000 | 3,827,000 | 5,170,000 | 5,133,000 | 8,712,000 | 9,914,000 | 9,470,000 | 10,406,000 | 11,459,000 | 9,240,000 | 9,692,000 | 10,099,000 | 5,461,000 | 5,307,000 | 5,336,000 |
| Inventory | US$ in thousands | 710,000 | 1,205,000 | 818,000 | 771,000 | 709,000 | 1,269,000 | 971,000 | 820,000 | 709,000 | 1,149,000 | 728,000 | 636,000 | 572,000 | 883,000 | 1,476,000 | 1,491,000 | 1,287,000 | 2,032,000 | 1,329,000 | 1,357,000 |
| Inventory turnover | 8.66 | 5.11 | 7.61 | 8.08 | 8.72 | 3.12 | 3.94 | 6.30 | 7.24 | 7.58 | 13.62 | 14.89 | 18.19 | 12.98 | 6.26 | 6.50 | 7.85 | 2.69 | 3.99 | 3.93 |
February 3, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $6,151,000K ÷ $710,000K
= 8.66
Bath & Body Works Inc. has shown varying levels of inventory turnover over the past few years, as indicated by the data provided. The inventory turnover ratio measures how efficiently a company manages its inventory by showing how many times inventory is sold and replaced over a period.
In the most recent period, as of February 3, 2024, Bath & Body Works Inc. had an inventory turnover of 8.66. This implies that the company sold and replaced its inventory approximately 8.66 times during that period. This is generally considered a healthy level of inventory turnover, indicating efficient inventory management.
Looking at the trend over the previous periods, the inventory turnover ratios have fluctuated. For instance, in some periods, like July 31, 2021, and May 1, 2021, the inventory turnover was significantly higher at 13.62 and 14.89 respectively, suggesting even more efficient inventory management during those times.
On the other hand, there were also periods, such as August 3, 2019, and May 4, 2019, where the inventory turnover ratios were much lower at 2.69 and 3.93, indicating slower inventory turnover and potentially excess inventory levels.
Overall, Bath & Body Works Inc. should aim to strike a balance in managing its inventory turnover by avoiding both stockouts and excess inventory. This can help optimize working capital and improve profitability by reducing storage costs and minimizing the risk of obsolete inventory.
Peer comparison
Feb 3, 2024
Feb 3, 2024