Dollar Tree Inc (DLTR)

Inventory turnover

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Cost of revenue	US$ in thousands	21,294,200	19,409,800	18,595,300	17,721,900	16,570,100
Inventory	US$ in thousands	5,412,600	5,747,900	4,570,500	3,599,700	3,522,000
Inventory turnover		3.93	3.38	4.07	4.92	4.70

February 3, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $21,294,200K ÷ $5,412,600K
= 3.93

The inventory turnover ratio for Dollar Tree Inc has shown fluctuations over the past five years. In fiscal year 2022, the company's inventory turnover ratio was 3.93, indicating that the company's inventory was sold and replaced approximately 3.93 times during the year. This was an increase from the previous year's ratio of 3.38.

However, the inventory turnover ratio decreased in fiscal year 2023 to 4.07, before further decreasing to 4.92 in fiscal year 2021. This suggests that the company took longer to sell and replace its inventory during those years.

In the most recent fiscal year, the inventory turnover ratio improved slightly to 4.70, which may signify more efficient inventory management practices by Dollar Tree Inc.

Overall, the trend in Dollar Tree Inc's inventory turnover ratio indicates variability in the efficiency of the company's inventory management over the past five years. Further analysis may be required to understand the underlying reasons for these fluctuations and to assess the effectiveness of the company's inventory control strategies.