BJs Wholesale Club Holdings Inc (BJ)

Inventory turnover

		Jan 31, 2025	Feb 3, 2024	Jan 31, 2024	Jan 31, 2023	Jan 28, 2023
Cost of revenue	US$ in thousands	16,737,400	16,326,100	16,326,100	15,883,700	15,883,700
Inventory	US$ in thousands	1,508,990	1,454,820	1,454,820	1,378,550	1,378,550
Inventory turnover		11.09	11.22	11.22	11.52	11.52

January 31, 2025 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $16,737,400K ÷ $1,508,990K
= 11.09

Based on the provided data, BJs Wholesale Club Holdings Inc has maintained a relatively stable inventory turnover ratio over the past few years. The inventory turnover ratio for January 28, 2023, and January 31, 2023, stood at 11.52. This implies that the company sold and replaced its inventory approximately 11.52 times during those periods.

Subsequently, the inventory turnover ratio decreased slightly to 11.22 for January 31, 2024, and February 3, 2024. Despite this decrease, the ratio remained at a relatively high level, indicating efficient management of inventory levels and the ability to quickly sell and replenish stock.

In the most recent period, January 31, 2025, the inventory turnover ratio dipped slightly further to 11.09. This ongoing high ratio suggests that BJs Wholesale Club Holdings Inc continues to effectively manage its inventory, potentially avoiding excessive holding costs and obsolete inventory.

Overall, the consistent high inventory turnover ratios reflect the company's efficient inventory management practices and its ability to optimize inventory utilization, which may positively impact profitability and cash flow.