Costco Wholesale Corp (COST)
Inventory turnover
| 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 | Sep 1, 2019 | May 12, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 181,414,000 | 125,034,000 | 121,998,000 | 122,501,000 | 173,306,000 | 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 | 136,238,000 | 136,843,000 |
| Inventory | US$ in thousands | 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 | 11,395,000 | 11,304,000 |
| Inventory turnover | 10.62 | 6.95 | 7.33 | 7.50 | 10.78 | 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 | 11.96 | 12.11 |
February 18, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $181,414,000K ÷ $17,075,000K
= 10.62
Costco Wholesale Corp's inventory turnover has shown some fluctuations over the past few quarters. The inventory turnover ratio, which measures how many times a company's inventory is sold and replaced during a certain period, has ranged from a low of 6.95 to a high of 13.83 over the last few quarters.
In general, a higher inventory turnover ratio indicates that a company is selling its inventory more quickly, which can be a positive sign of efficient operations. Costco's inventory turnover has generally been healthy, with most values above 7, indicating that the company is effectively managing its inventory levels.
The highest inventory turnover ratio of 13.83 was recorded on May 10, 2020, indicating that Costco was able to sell and replace its inventory nearly 14 times during that period. On the other hand, the lowest value of 6.95 on Nov 26, 2023, suggests that the company took longer to sell and replenish its inventory during that particular quarter.
Overall, Costco's inventory turnover ratios reflect efficient inventory management practices, which is crucial for a retail company like Costco in order to maintain profitability and customer satisfaction.
Peer comparison
Feb 18, 2024
Feb 18, 2024