Home Depot Inc (HD)

Inventory turnover

		Jan 28, 2024	Oct 29, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Nov 1, 2020	Aug 2, 2020	May 3, 2020	Feb 2, 2020	Nov 3, 2019	Aug 4, 2019	May 5, 2019
Cost of revenue (ttm)	US$ in thousands	101,709,000	102,336,000	103,012,000	103,562,000	104,625,000	104,577,000	103,186,000	101,330,000	100,325,000	97,898,000	95,721,000	93,380,000	87,257,000	82,873,000	78,629,000	73,924,000	72,653,000	73,071,000	72,386,000	72,077,000
Inventory	US$ in thousands	20,976,000	22,805,000	23,265,000	25,371,000	24,886,000	25,719,000	26,088,000	25,297,000	22,068,000	20,582,000	18,909,000	19,178,000	16,627,000	16,155,000	13,498,000	14,989,000	14,531,000	15,711,000	14,741,000	15,495,000
Inventory turnover		4.85	4.49	4.43	4.08	4.20	4.07	3.96	4.01	4.55	4.76	5.06	4.87	5.25	5.13	5.83	4.93	5.00	4.65	4.91	4.65

January 28, 2024 calculation

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

The inventory turnover for Home Depot Inc has shown some fluctuations over the past 20 reported periods. The ratio measures how many times a company's inventory is sold and replaced over a certain period, indicating the efficiency of managing its inventory levels.

The average inventory turnover for Home Depot Inc over these 20 periods is approximately 4.72. A higher inventory turnover generally signifies better inventory management and indicates that the company is efficiently selling its products and restocking its inventory.

Looking at the trend, we observe slight variability in the inventory turnover ratio over time. The ratio has ranged from a low of 3.96 to a high of 5.83, with some periods showing a consistent performance around the average, while others deviate slightly.

It is essential to note that a high inventory turnover ratio may indicate either strong sales or inadequate inventory levels. Conversely, a low turnover ratio could suggest overstocking, slow-moving inventory, or weak sales.

Overall, Home Depot Inc's inventory turnover ratios reflect a reasonable level of efficiency in managing its inventory, although periodic fluctuations indicate the need for ongoing monitoring and adjustments in inventory management strategies.