Home Depot Inc (HD)

Inventory turnover

		Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020
Cost of revenue	US$ in thousands	101,709,000	104,625,000	100,325,000	87,257,000	72,653,000
Inventory	US$ in thousands	20,976,000	24,886,000	22,068,000	16,627,000	14,531,000
Inventory turnover		4.85	4.20	4.55	5.25	5.00

January 28, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $101,709,000K ÷ $20,976,000K
= 4.85

Home Depot Inc's inventory turnover has exhibited fluctuations over the past five years. The inventory turnover ratio indicates the number of times a company has sold and replaced its inventory during a specific period. A higher inventory turnover ratio generally signifies effective inventory management.

The inventory turnover for Home Depot Inc was 4.85 in January 28, 2024, indicating that the company's inventory was turned over approximately 4.85 times during that fiscal year. This represented an improvement compared to the previous fiscal year, where the inventory turnover was 4.20.

In January 30, 2022, the inventory turnover was 4.55, reflecting a slight decrease from the prior year's ratio. The highest inventory turnover was observed on January 31, 2021, at 5.25, suggesting that the company sold and replaced its inventory more frequently in that fiscal year.

Comparing the most recent data to that of February 2, 2020, with an inventory turnover of 5.00, it appears that the current turnover ratio is slightly lower. It is essential for Home Depot Inc to continue monitoring and optimizing its inventory turnover to ensure efficient management of its inventory levels and to meet customer demands effectively.