Dick’s Sporting Goods Inc (DKS)
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 | 11,909,150 | 11,681,060 | 11,545,000 | 11,285,360 | 11,099,810 | 10,579,590 | 10,273,970 | 10,233,020 | 10,340,940 | 10,299,760 | 10,138,000 | 9,848,730 | 8,846,850 | 8,550,780 | 8,301,340 | 8,083,530 | 8,408,730 | 8,221,870 | 8,109,700 | 8,020,450 |
| Inventory | US$ in thousands | 2,848,800 | 3,282,910 | 2,851,370 | 3,034,200 | 2,830,920 | 3,361,060 | 2,995,960 | 2,824,830 | 2,297,610 | 2,490,440 | 2,011,020 | 2,012,050 | 1,953,570 | 2,319,990 | 1,875,150 | 2,096,960 | 2,202,280 | 2,573,250 | 2,136,800 | 2,142,020 |
| Inventory turnover | 4.18 | 3.56 | 4.05 | 3.72 | 3.92 | 3.15 | 3.43 | 3.62 | 4.50 | 4.14 | 5.04 | 4.89 | 4.53 | 3.69 | 4.43 | 3.85 | 3.82 | 3.20 | 3.80 | 3.74 |
February 3, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $11,909,150K ÷ $2,848,800K
= 4.18
Inventory turnover is a key financial ratio that measures how efficiently a company is managing its inventory. It is calculated by dividing the cost of goods sold by the average inventory level. A higher inventory turnover ratio indicates that a company is selling its products more quickly.
In the case of Dick's Sporting Goods Inc, the inventory turnover ratio has fluctuated over the past few quarters, ranging from 3.15 to 5.04. The average inventory turnover ratio for the period under review is approximately 3.99. This suggests that, on average, Dick's Sporting Goods Inc is turning over its inventory about 3.99 times during the year.
A ratio of 4.18 in the most recent quarter indicates that the company is managing its inventory more efficiently compared to the previous quarters. A higher inventory turnover ratio could be attributed to factors such as effective inventory management practices, strong demand for products, and effective merchandising strategies.
On the other hand, lower inventory turnover ratios, such as 3.15 in one of the previous quarters, may indicate potential issues such as excess inventory levels, slow-moving or obsolete products, or inefficient inventory management practices.
Overall, monitoring inventory turnover ratios can provide valuable insights into a company's operational efficiency and inventory management practices, helping investors and stakeholders assess the company's performance and competitiveness in the market.
Peer comparison
Feb 3, 2024
Feb 3, 2024