BJs Wholesale Club Holdings Inc (BJ)

Inventory turnover

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Cost of revenue	US$ in thousands	16,326,100	15,883,700	13,588,600	12,451,100	10,763,900
Inventory	US$ in thousands	1,454,820	1,378,550	1,242,940	1,205,700	1,081,500
Inventory turnover		11.22	11.52	10.93	10.33	9.95

February 3, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $16,326,100K ÷ $1,454,820K
= 11.22

The inventory turnover for BJs Wholesale Club Holdings Inc has been consistently strong over the past five years, showing a consistently increasing trend from 9.95 in February 2020 to 11.22 in February 2024. This indicates that the company is efficiently managing its inventory levels and turning over its inventory at a faster rate each year.

A high inventory turnover ratio signifies that BJs Wholesale Club Holdings Inc is effectively selling its products and replenishing its inventory quickly, which can lead to lower holding costs and reduced risk of obsolescence. This trend suggests that the company has efficient inventory management practices in place, allowing it to keep its inventory levels optimal and align them closely with customer demand.

Overall, the increasing trend in inventory turnover for BJs Wholesale Club Holdings Inc reflects positively on the company's operational efficiency and ability to effectively manage its supply chain.