Kohl's Corporation (KSS)
Inventory turnover
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 16,183,800 | 16,759,000 | 11,247,000 | 11,457,000 | 17,874,000 |
| Inventory | US$ in thousands | 2,945,000 | 2,880,000 | 2,880,000 | 3,189,000 | 3,189,000 |
| Inventory turnover | 5.50 | 5.82 | 3.91 | 3.59 | 5.60 |
January 31, 2025 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $16,183,800K ÷ $2,945,000K
= 5.50
Kohl's Corporation's inventory turnover has exhibited fluctuations over the past few years. The inventory turnover ratio measures how efficiently the company manages its inventory levels.
In January 2023, the inventory turnover was 5.60, indicating that Kohl's was able to sell and replace its inventory approximately 5.60 times during that year. This suggests a relatively efficient management of inventory at that time.
However, by January 2024, the inventory turnover had decreased to 3.59, which may imply that Kohl's was holding onto its inventory for a longer period before selling it. This could potentially tie up capital and impact profitability.
There was a slight improvement in February 2024, with the inventory turnover rising to 5.82. This increase may indicate that Kohl's successfully streamlined its inventory management processes, leading to quicker inventory turnover.
In January 2025, the inventory turnover ratio was 5.50, showing a consistent level of efficiency in managing inventory comparable to previous years.
Overall, Kohl's Corporation should continue to monitor its inventory turnover to ensure optimal levels that support sales and profitability. Efforts to maintain a balance between stocking enough inventory to meet demand while avoiding excess holding costs are essential for sustained business success.
Peer comparison
Jan 31, 2025