Five Below Inc (FIVE)

Inventory turnover

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Feb 3, 2024	Jan 31, 2024	Oct 31, 2023	Oct 28, 2023	Jul 31, 2023	Jul 29, 2023	Apr 30, 2023	Apr 29, 2023	Jan 31, 2023	Jan 28, 2023	Oct 31, 2022	Oct 29, 2022	Jul 31, 2022	Jul 30, 2022	Apr 30, 2022	Jan 31, 2022
Cost of revenue (ttm)	US$ in thousands	2,598,587	2,764,888	3,002,436	2,916,262	3,051,017	2,551,477	2,428,648	2,406,514	2,399,253	2,575,205	2,811,419	2,757,202	2,668,281	2,463,488	2,139,803	2,135,396	2,110,734	2,496,762	2,289,129	2,431,206
Inventory	US$ in thousands	659,500	817,832	639,881	629,981	584,627	584,627	763,349	763,349	543,621	543,621	534,389	534,389	527,720	527,720	701,561	701,561	569,201	569,201	504,182	455,104
Inventory turnover		3.94	3.38	4.69	4.63	5.22	4.36	3.18	3.15	4.41	4.74	5.26	5.16	5.06	4.67	3.05	3.04	3.71	4.39	4.54	5.34

January 31, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,598,587K ÷ $659,500K
= 3.94

The inventory turnover for Five Below Inc has fluctuated over the past few years, indicating changes in the efficiency of managing its inventory. The trend shows a steady decline from 5.34 on January 31, 2022, to 3.94 on January 31, 2025. This suggests that the company took longer to sell through its inventory over this period.

There were periods of improvement in inventory turnover, such as an increase from 3.71 on July 31, 2022, to 5.06 on January 31, 2023. However, these gains were not sustained, as the ratio later dropped.

Overall, the company's inventory turnover ratio remains within a range between 3 and 5, indicating that, on average, Five Below Inc is able to sell and replace its inventory within a reasonable timeframe. The management should continue monitoring and adjusting its inventory levels to ensure optimal turnover and efficient working capital management.