Dollar Tree Inc (DLTR)

Inventory turnover

		Jan 31, 2025	Feb 3, 2024	Jan 31, 2024	Jan 31, 2023	Jan 28, 2023
Cost of revenue	US$ in thousands	11,284,100	21,294,200	21,272,000	19,396,300	19,409,800
Inventory	US$ in thousands	2,672,000	5,412,600	5,112,800	5,449,300	5,747,900
Inventory turnover		4.22	3.93	4.16	3.56	3.38

January 31, 2025 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $11,284,100K ÷ $2,672,000K
= 4.22

Based on the provided inventory turnover data for Dollar Tree Inc over the past few years, we can observe a fluctuating trend in the efficiency of their inventory management.

In January 28, 2023, the inventory turnover ratio was 3.38, indicating that the company's inventory turned over approximately 3.38 times during that year. This suggests that Dollar Tree managed its inventory reasonably well, but there was room for improvement.

By January 31, 2023, the inventory turnover ratio slightly increased to 3.56, showing a positive uptick in the efficiency of their inventory management practices.

A significant improvement was seen by January 31, 2024, with the inventory turnover ratio reaching 4.16. This suggests that Dollar Tree was able to sell and replace its inventory more frequently during that period, which is a favorable sign of efficient inventory management.

However, there was a slight decline in efficiency by February 3, 2024, with the inventory turnover ratio decreasing to 3.93. While still relatively healthy, this decrease may indicate a slight slowdown in inventory turnover compared to the previous period.

The most recent data on January 31, 2025, shows an increase in inventory turnover to 4.22, indicating that Dollar Tree was able to further enhance its inventory management efficiency.

In conclusion, despite some fluctuations, Dollar Tree Inc has generally shown improvement in its inventory turnover over the years, which is a positive sign of effective inventory management and indicates the company's ability to efficiently sell its products and manage its inventory levels.