Home Depot Inc (HD)

Inventory turnover

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Jan 28, 2024	Oct 31, 2023	Oct 29, 2023	Jul 31, 2023	Jul 30, 2023	Apr 30, 2023	Jan 31, 2023	Jan 29, 2023	Oct 31, 2022	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Apr 30, 2022	Jan 31, 2022	Jan 30, 2022
Cost of revenue (ttm)	US$ in thousands	106,893,000	103,501,000	99,987,000	96,200,000	96,500,000	101,981,000	107,462,000	107,190,000	106,123,000	101,269,000	98,158,000	99,106,000	104,510,000	106,368,000	106,483,000	104,692,000	99,240,000	97,734,000	99,424,000	103,020,000
Inventory	US$ in thousands	23,451,000	23,897,000	23,060,000	22,416,000	20,976,000	20,976,000	22,805,000	22,805,000	23,265,000	23,265,000	25,371,000	24,886,000	24,886,000	25,719,000	25,719,000	26,088,000	25,297,000	25,297,000	22,068,000	22,068,000
Inventory turnover		4.56	4.33	4.34	4.29	4.60	4.86	4.71	4.70	4.56	4.35	3.87	3.98	4.20	4.14	4.14	4.01	3.92	3.86	4.51	4.67

January 31, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $106,893,000K ÷ $23,451,000K
= 4.56

Based on the provided data on Home Depot Inc's inventory turnover, the company's inventory turnover ratio has shown some fluctuations over the period analyzed. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times the inventory is sold and replaced during a specific period.

From January 30, 2022, to January 31, 2025, the inventory turnover ratio ranged from a low of 3.86 to a high of 4.86, with an overall trend of moderate improvement. This indicates that, on average, Home Depot Inc has been able to turn over its inventory between 3.86 and 4.86 times during a given year.

Some key points to note include:

1. The inventory turnover ratio experienced some fluctuations, which could be attributed to factors such as seasonal demand for home improvement products and supply chain disruptions.
2. The improvement in the inventory turnover ratio over the period suggests that the company may have become more efficient in managing its inventory levels and optimizing sales.

Overall, a higher inventory turnover ratio is generally seen as a positive indicator, as it signifies that a company is selling its products quickly and efficiently. However, it is important to consider industry benchmarks and the company's specific business model when interpreting inventory turnover ratios.