Five Below Inc (FIVE)

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	3,127,632	3,070,291	2,974,109	2,886,638	2,794,861	2,709,849	2,660,645	2,608,115	2,540,244	2,404,987	2,282,456	2,115,038	1,850,948	1,702,030	1,614,418	1,602,821	1,665,692	1,395,553	1,348,112	1,247,661
Inventory	US$ in thousands	584,627	763,349	543,621	534,389	527,720	701,561	569,201	504,182	455,104	521,107	347,302	326,710	281,267	430,200	294,057	367,516	324,028	419,340	272,689	268,437
Inventory turnover		5.35	4.02	5.47	5.40	5.30	3.86	4.67	5.17	5.58	4.62	6.57	6.47	6.58	3.96	5.49	4.36	5.14	3.33	4.94	4.65

February 3, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,127,632K ÷ $584,627K
= 5.35

The inventory turnover ratio for Five Below Inc has shown fluctuations over the past few periods. The inventory turnover ratio measures how efficiently a company manages its inventory by evaluating how many times the company's inventory is sold and replaced over a specific period.

From Nov 2, 2019, to Feb 3, 2024, Five Below Inc's inventory turnover ratio ranged from a low of 3.33 to a high of 6.58. The average inventory turnover ratio during this period was approximately 5.06, indicating that, on average, Five Below Inc turned over its inventory about 5 times within a year.

The highest inventory turnover ratio of 6.58 was observed on Jan 30, 2021, and Jan 29, 2022, which suggests that the company efficiently managed its inventory by selling and replacing it multiple times over the specified period. In contrast, the lowest turnover ratio of 3.33 was recorded on Aug 3, 2019, indicating that the company was less efficient in managing its inventory during that period.

Overall, the general trend of Five Below Inc's inventory turnover ratio appears to be fluctuating, but it has been relatively stable around the 5 times mark, with some periods showing higher efficiency in managing inventory turnover than others. This analysis suggests that the company has been maintaining a reasonably efficient level of inventory turnover over the examined period.