Chewy Inc (CHWY)
Inventory turnover
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 10,432,800 | 9,397,300 | 8,344,050 | 6,723,430 | 4,672,570 |
| Inventory | US$ in thousands | 719,273 | 678,005 | 560,430 | 513,304 | 317,808 |
| Inventory turnover | 14.50 | 13.86 | 14.89 | 13.10 | 14.70 |
January 28, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $10,432,800K ÷ $719,273K
= 14.50
Inventory turnover is a crucial financial ratio for Chewy Inc, indicating how efficiently the company manages its inventory. Over the past five years, Chewy's inventory turnover ratio has been relatively stable, ranging from 13.10 to 14.89. This consistency suggests that Chewy has been effectively managing its inventory levels and turning over its inventory multiple times during each fiscal year.
The inventory turnover of 14.50 for January 28, 2024, indicates that Chewy efficiently converted its inventory into sales during that period. A higher inventory turnover ratio suggests that Chewy is selling its products quickly, minimizing the risk of obsolete or unsold inventory. This efficient turnover is favorable as it helps in maintaining optimal cash flow and maximizing profitability.
Overall, Chewy's inventory turnover ratios over the years demonstrate effective inventory management practices and efficient operations, contributing positively to the company's financial performance. However, it is essential for Chewy to continue monitoring and optimizing its inventory turnover to sustain its operational efficiency and profitability in the long term.
Peer comparison
Jan 28, 2024