Guess? Inc. (GES)
Inventory turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,514,920 | 2,441,440 | 1,422,130 | 1,179,430 | 1,662,400 |
| Inventory | US$ in thousands | 466,297 | 510,899 | 462,295 | 389,144 | 393,129 |
| Inventory turnover | 5.39 | 4.78 | 3.08 | 3.03 | 4.23 |
February 3, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,514,920K ÷ $466,297K
= 5.39
Guess? Inc.'s inventory turnover has shown an improving trend over the past five years, indicating the company's efficiency in managing its inventory. The ratio has increased from 4.23 in 2020 to 5.39 in 2024. This suggests that Guess? Inc. is selling its inventory more quickly in recent years, which is a positive sign of effective inventory management and sales performance. The higher inventory turnover ratio indicates that the company is efficiently converting its inventory into sales, reducing the risk of obsolete inventory and tying up less capital in unsold goods. Overall, the increasing trend in inventory turnover reflects positively on Guess? Inc.'s operational efficiency and financial performance.