Ollie's Bargain Outlet Hldg (OLLI)

Inventory turnover

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Feb 3, 2024	Jan 31, 2024	Oct 31, 2023	Oct 28, 2023	Jul 31, 2023	Jul 29, 2023	Apr 30, 2023	Apr 29, 2023	Jan 31, 2023	Jan 28, 2023	Oct 31, 2022	Oct 29, 2022	Jul 31, 2022	Jul 30, 2022	Apr 30, 2022	Jan 31, 2022
Cost of revenue (ttm)	US$ in thousands	1,364,969	1,520,784	1,611,381	1,537,976	1,671,781	1,438,311	1,506,717	1,501,361	1,480,995	1,506,476	1,526,590	1,499,403	1,467,328	1,432,894	1,386,745	1,398,690	1,328,244	1,463,055	1,258,045	1,345,978
Inventory	US$ in thousands	552,542	607,331	531,286	527,469	505,790	505,790	532,370	532,370	498,331	498,331	497,988	497,988	470,534	470,534	523,728	523,728	494,133	494,133	517,033	467,306
Inventory turnover		2.47	2.50	3.03	2.92	3.31	2.84	2.83	2.82	2.97	3.02	3.07	3.01	3.12	3.05	2.65	2.67	2.69	2.96	2.43	2.88

January 31, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,364,969K ÷ $552,542K
= 2.47

Ollie's Bargain Outlet Hldg's inventory turnover ratio provides insight into how efficiently the company manages its inventory. The inventory turnover ratio is calculated by dividing the cost of goods sold by the average inventory for a specific period.

Analyzing the historical inventory turnover data provided:
- The inventory turnover ratio fluctuated over the analyzed periods, ranging from a low of 2.43 in April 30, 2022, to a high of 3.31 in February 3, 2024.
- The highest inventory turnover ratio recorded was 3.31 on February 3, 2024, indicating that Ollie's Bargain Outlet Hldg managed to sell its entire inventory around 3.31 times during that period. This suggests efficient management of inventory.
- On the other hand, the lowest inventory turnover ratio of 2.43 in April 30, 2022, indicates that the company took a longer time to sell its inventory during that period, potentially signaling overstocking or slow sales.
- There seems to be a slight overall increasing trend in the inventory turnover ratio from 2022 to 2024, indicating potential improvements in inventory management efficiency over time.
- However, the sudden decrease in inventory turnover ratio from February 3, 2024, to April 30, 2024, followed by a slight increase in the subsequent periods, may require further investigation to understand the underlying drivers of these changes.

In conclusion, while Ollie's Bargain Outlet Hldg has shown fluctuations in its inventory turnover ratio over the analyzed periods, a general increasing trend was observed. This ratio provides valuable insights into the company's efficiency in managing its inventory levels and sales performance. Tracking changes in the inventory turnover ratio over time can help identify operational improvements or challenges within the company's supply chain and sales processes.