BJs Wholesale Club Holdings Inc (BJ)

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	16,737,380	16,801,850	17,071,970	16,845,390	16,832,500	16,505,220	16,177,940	15,998,850	15,819,760	15,779,440	15,739,120	15,804,190	15,869,260	16,086,620	16,303,980	16,101,600	15,754,000	15,070,850	14,299,950	14,066,980
Inventory	US$ in thousands	1,508,990	1,720,010	1,546,210	1,533,310	1,454,820	1,454,820	1,661,850	1,661,850	1,540,510	1,540,510	1,532,010	1,532,010	1,378,550	1,378,550	1,504,370	1,504,370	1,376,530	1,376,530	1,462,100	1,242,940
Inventory turnover		11.09	9.77	11.04	10.99	11.57	11.35	9.73	9.63	10.27	10.24	10.27	10.32	11.51	11.67	10.84	10.70	11.44	10.95	9.78	11.32

January 31, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $16,737,380K ÷ $1,508,990K
= 11.09

BJs Wholesale Club Holdings Inc has shown fluctuations in its inventory turnover ratio over the period from January 31, 2022, to January 31, 2025. The inventory turnover ratio provides insight into how effectively the company is managing its inventory.

The inventory turnover ratio for BJs Wholesale Club Holdings Inc ranged from a low of 9.63 to a high of 11.67 during this period. A higher inventory turnover ratio indicates that the company is selling its inventory more quickly, which is generally positive as it suggests efficient inventory management.

The company's inventory turnover ratio peaked at 11.67 on January 28, 2023, indicating that the company was selling its inventory at a faster rate during that period. However, there were also periods where the ratio decreased, such as on October 28, 2023, when it dropped to 9.63.

Overall, BJs Wholesale Club Holdings Inc has maintained relatively healthy inventory turnover ratios, staying mostly above 10. This suggests that, on average, the company effectively turns over its inventory multiple times a year, ensuring that inventory is not sitting idle for extended periods.

It is essential for the company to continue monitoring and managing its inventory effectively to ensure optimal utilization of resources and to maintain a healthy balance between inventory levels and sales.