Kroger Company (KR)
Inventory turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 117,948,000 | 117,875,000 | 108,823,000 | 102,710,000 | 96,508,000 |
| Inventory | US$ in thousands | 7,105,000 | 7,560,000 | 6,783,000 | 7,063,000 | 7,084,000 |
| Inventory turnover | 16.60 | 15.59 | 16.04 | 14.54 | 13.62 |
February 3, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $117,948,000K ÷ $7,105,000K
= 16.60
The inventory turnover ratio measures how efficiently Kroger Company manages its inventory by indicating the number of times the inventory is sold and replaced over a specific period. Over the past five years, Kroger's inventory turnover has shown a generally increasing trend, indicating improved efficiency in managing its inventory levels. In the latest fiscal year ending February 3, 2024, the inventory turnover ratio reached 16.60, which means that Kroger's inventory was sold and replaced approximately 16.60 times during the year.
This improvement in inventory turnover suggests that Kroger has been able to effectively manage its inventory levels, possibly through better inventory planning and management practices. A higher inventory turnover ratio generally indicates that the company is selling its products quickly, minimizing inventory holding costs, and generating cash flow more efficiently.
Kroger's consistent increase in inventory turnover over the past five years demonstrates a positive trend in the company's operational efficiency and ability to adapt to changing market demands. This trend may indicate effective inventory management strategies, strong demand for Kroger's products, and streamlined supply chain operations. Overall, a higher inventory turnover ratio is favorable as it signifies effective inventory management practices and operational efficiency within the company.
Peer comparison
Feb 3, 2024