BJs Wholesale Club Holdings Inc (BJ)

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	16,326,130	15,958,530	15,844,510	16,021,550	15,884,240	15,418,450	14,983,100	14,152,950	13,588,610	13,232,010	12,747,540	12,531,670	12,451,060	12,097,150	11,720,510	11,255,840	10,763,930	10,701,760	10,719,580	10,705,100
Inventory	US$ in thousands	1,454,820	1,661,850	1,540,510	1,532,010	1,378,550	1,504,370	1,376,530	1,462,100	1,242,940	1,255,660	1,033,560	1,120,330	1,205,700	1,264,320	1,005,270	1,024,940	1,081,500	1,271,170	1,026,540	1,085,560
Inventory turnover		11.22	9.60	10.29	10.46	11.52	10.25	10.88	9.68	10.93	10.54	12.33	11.19	10.33	9.57	11.66	10.98	9.95	8.42	10.44	9.86

February 3, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $16,326,130K ÷ $1,454,820K
= 11.22

The inventory turnover ratio of BJs Wholesale Club Holdings Inc has fluctuated over the past few years, ranging from 8.42 to 12.33. The overall trend seems to indicate that the company effectively manages its inventory levels to generate sales. A higher inventory turnover ratio typically suggests that the company is selling its inventory quickly, which is generally seen as a positive indicator of operational efficiency.

However, it is important to note that a very high turnover ratio may also indicate low inventory levels, which could potentially lead to stockouts and lost sales opportunities. On the other hand, a low inventory turnover ratio may suggest inefficient inventory management or overstocking.

Overall, the average inventory turnover ratio of BJs Wholesale Club Holdings Inc appears reasonable, indicating a balance between maintaining an adequate level of inventory to meet customer demand while also efficiently converting inventory into sales. Monitoring this ratio over time can help assess the company's inventory management practices and operational performance.