Ollie's Bargain Outlet Hldg (OLLI)

Inventory turnover

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Cost of revenue	US$ in thousands	1,874,860	1,696,080	1,548,400	1,531,320	1,236,360
Inventory	US$ in thousands	505,790	470,534	467,306	353,704	335,181
Inventory turnover		3.71	3.60	3.31	4.33	3.69

February 3, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,874,860K ÷ $505,790K
= 3.71

Inventory turnover is an important financial ratio that measures how efficiently a company manages its inventory. Ollie's Bargain Outlet Hldg has shown fluctuations in its inventory turnover over the past five years. The inventory turnover was 3.71 in Feb 3, 2024, which indicates that the company sold and replaced its inventory approximately 3.71 times during that fiscal year.

Comparing this figure with the previous years, we observe a slight increase from 3.60 in Jan 28, 2023, and a more significant increase from 3.31 in Jan 29, 2022. However, the inventory turnover ratio was higher at 4.33 in Jan 30, 2021, suggesting that the company was more efficient in managing its inventory that year.

The drop to 3.69 in Feb 1, 2020, indicates a decrease in inventory turnover, which might suggest issues such as overstocking or slow-moving inventory during that period. Overall, despite fluctuations, Ollie's Bargain Outlet Hldg has generally maintained reasonable inventory turnover levels, indicating effective inventory management practices over the past five years.