Helen of Troy Ltd (HELE)
Inventory turnover
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,762,787 | 1,770,628 | 1,809,354 | 1,839,090 | 1,879,198 | 1,974,426 | 2,027,857 | 1,961,340 | 1,963,589 | 1,908,135 | 1,914,820 | 1,943,012 | 1,834,954 | 1,389,240 | 1,247,969 | 1,175,778 | 1,140,452 | 1,098,177 | 1,071,004 | 1,053,356 |
| Inventory | US$ in thousands | 395,995 | 426,026 | 435,681 | 433,913 | 455,485 | 536,793 | 643,192 | 613,625 | 557,992 | 585,811 | 606,655 | 540,129 | 481,611 | 383,440 | 350,180 | 276,327 | 256,311 | 333,656 | 370,915 | 335,344 |
| Inventory turnover | 4.45 | 4.16 | 4.15 | 4.24 | 4.13 | 3.68 | 3.15 | 3.20 | 3.52 | 3.26 | 3.16 | 3.60 | 3.81 | 3.62 | 3.56 | 4.26 | 4.45 | 3.29 | 2.89 | 3.14 |
February 29, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,762,787K ÷ $395,995K
= 4.45
Helen of Troy Ltd has demonstrated fluctuations in its inventory turnover ratio over the past few years. The inventory turnover ratio measures the efficiency of a company in managing its inventory levels and converting them into sales. A higher inventory turnover ratio indicates that the company is selling its inventory quickly, which is generally seen as positive.
From February 2019 to February 2024, Helen of Troy Ltd's inventory turnover ratio has ranged from 2.89 to 4.45, with an average of approximately 3.70. The highest turnover ratio was observed in February 2020 and February 2024 at 4.45, indicating that the company effectively managed its inventory and converted it into sales during those periods. However, the lowest turnover ratio of 2.89 was recorded in November 2019, suggesting potential challenges in efficiently managing inventory levels.
Overall, the trend in Helen of Troy Ltd's inventory turnover ratio has shown some variability but has generally remained above 3.00, indicating that the company has been effective in managing its inventory levels and turning them into revenue over the years. It would be beneficial for the company to maintain this trend to ensure optimal use of its resources and improve its financial performance.