Kroger Company (KR)
Inventory turnover
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 113,720,000 | 117,948,000 | 119,800,000 | 116,480,000 | 117,875,000 |
| Inventory | US$ in thousands | 7,038,000 | 7,105,000 | 7,105,000 | 7,560,000 | 7,560,000 |
| Inventory turnover | 16.16 | 16.60 | 16.86 | 15.41 | 15.59 |
January 31, 2025 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $113,720,000K ÷ $7,038,000K
= 16.16
Kroger Company's inventory turnover has shown a consistent and healthy trend over the past few years. The inventory turnover ratio, which measures how efficiently the company manages its inventory, increased from 15.59 in January 28, 2023, to 16.16 in January 31, 2025. This indicates that Kroger is selling its inventory at a faster rate.
A higher inventory turnover ratio suggests that the company is efficiently managing its inventory levels and is able to quickly convert its inventory into sales. This can help reduce holding costs and minimize the risk of obsolescence.
Overall, the increasing trend in Kroger's inventory turnover ratio is a positive indication of the company's operational efficiency and effective inventory management strategies. Further analysis and comparison with industry benchmarks can provide more insights into Kroger's performance in this aspect.
Peer comparison
Jan 31, 2025