Costco Wholesale Corp (COST)
Inventory turnover
| Sep 1, 2024 | May 12, 2024 | Feb 18, 2024 | Nov 26, 2023 | Sep 3, 2023 | May 7, 2023 | Feb 12, 2023 | Nov 20, 2022 | Aug 28, 2022 | May 8, 2022 | Feb 13, 2022 | Nov 21, 2021 | Aug 29, 2021 | May 9, 2021 | Feb 14, 2021 | Nov 22, 2020 | Aug 30, 2020 | May 10, 2020 | Feb 16, 2020 | Nov 24, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 245,265,000 | 244,840,000 | 240,789,000 | 237,772,000 | 234,736,000 | 228,131,000 | 226,669,000 | 223,398,000 | 219,407,000 | 149,769,000 | 142,578,000 | 135,915,000 | 128,905,000 | 180,275,000 | 172,748,000 | 167,129,000 | 161,334,000 | 152,240,000 | 147,162,000 | 140,840,000 |
| Inventory | US$ in thousands | 18,647,000 | 17,430,000 | 17,075,000 | 18,001,000 | 16,651,000 | 16,324,000 | 16,081,000 | 18,571,000 | 17,907,000 | 17,623,000 | 16,485,000 | 16,942,000 | 14,215,000 | 13,975,000 | 13,865,000 | 14,901,000 | 12,242,000 | 11,010,000 | 11,850,000 | 13,818,000 |
| Inventory turnover | 13.15 | 14.05 | 14.10 | 13.21 | 14.10 | 13.98 | 14.10 | 12.03 | 12.25 | 8.50 | 8.65 | 8.02 | 9.07 | 12.90 | 12.46 | 11.22 | 13.18 | 13.83 | 12.42 | 10.19 |
September 1, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $245,265,000K ÷ $18,647,000K
= 13.15
Costco Wholesale Corp's inventory turnover has shown fluctuations over the past several quarters. The company's inventory turnover ratio has ranged from a low of 8.02 to a high of 14.10 in the most recent quarter. This indicates that Costco is managing its inventory efficiently, with a higher turnover ratio suggesting that the company is selling its inventory quickly.
In general, a higher inventory turnover ratio is preferred as it implies that Costco is selling its inventory more frequently and replenishing it in a timely manner. This can lead to reduced carrying costs and potentially higher profitability. However, a significant increase or decrease in inventory turnover should be analyzed in conjunction with other financial metrics to understand the underlying reasons for the change.
Overall, Costco's inventory turnover ratios in the range of 8.02 to 14.10 over the past few quarters indicate efficient inventory management practices, helping to optimize the company's operations and financial performance.
Peer comparison
Sep 1, 2024
Sep 1, 2024