Buckle Inc (BKE)

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	990,043	996,032	1,009,558	1,010,154	1,017,055	996,516	980,815	971,790	959,108	922,067	881,729	824,984	733,256	710,119	704,051	717,773	768,757	770,811	768,806	765,510
Inventory	US$ in thousands	126,290	152,289	136,074	137,735	125,134	152,335	128,498	121,166	102,095	100,593	95,276	89,017	101,063	118,707	116,479	121,671	121,258	138,879	129,068	120,814
Inventory turnover		7.84	6.54	7.42	7.33	8.13	6.54	7.63	8.02	9.39	9.17	9.25	9.27	7.26	5.98	6.04	5.90	6.34	5.55	5.96	6.34

February 3, 2024 calculation

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

Inventory turnover measures how efficiently a company manages its inventory by indicating the number of times inventory is sold and replaced during a specific period. A higher turnover ratio generally indicates that inventory is selling quickly, which is positive as it reduces the risk of obsolescence and holding costs.

Looking at Buckle Inc's inventory turnover ratios over the past few years, we can see some fluctuations but overall a relatively healthy trend. The company's inventory turnover has ranged from 5.55 to 9.39 times during the periods analyzed. The average inventory turnover ratio appears to be around 7.4, indicating that on average, Buckle Inc's inventory is being sold and replaced about 7.4 times a year.

A consistent and moderate to high inventory turnover ratio implies effective inventory management, ensuring that their products are moving quickly and not sitting idle for extended periods. It suggests that Buckle Inc is efficiently managing its inventory levels, possibly through effective inventory controls, demand forecasting, and supply chain management.

Overall, Buckle Inc's inventory turnover ratios reflect a healthy level of efficiency in managing their inventory, which is essential for maintaining good cash flow, reducing carrying costs, and maximizing profitability.