Buckle Inc (BKE)

Inventory turnover

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Cost of revenue	US$ in thousands	990,043	1,017,060	959,108	733,256	768,757
Inventory	US$ in thousands	126,290	125,134	102,095	101,063	121,258
Inventory turnover		7.84	8.13	9.39	7.26	6.34

February 3, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $990,043K ÷ $126,290K
= 7.84

Based on the inventory turnover ratios of Buckle Inc from 2020 to 2024, we observe fluctuations in the efficiency of managing inventory. The inventory turnover ratio measures how many times a company's inventory is sold and replaced during a specific period. A higher ratio indicates quicker turnover, implying efficient inventory management.

In 2022, Buckle Inc achieved a peak inventory turnover ratio of 9.39, reflecting a significant improvement in inventory management efficiency. This indicates that the company was able to sell and replace its inventory almost 10 times during the year.

In contrast, the inventory turnover ratio decreased to 7.84 in 2024, which suggests a slight reduction in the pace of inventory turnover compared to the previous year. However, this ratio still indicates a relatively efficient inventory management process.

Overall, Buckle Inc has shown varying levels of efficiency in managing its inventory over the past five years. It is essential for the company to closely monitor inventory turnover to ensure optimal levels that balance between avoiding stockouts and minimizing excess inventory, thereby maximizing profitability and liquidity.