PVH Corp (PVH)

Inventory turnover

		Feb 4, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020
Cost of revenue	US$ in thousands	3,854,500	3,901,300	3,830,600	3,355,800	4,520,600
Inventory	US$ in thousands	1,419,700	1,802,600	1,348,500	1,417,100	1,615,700
Inventory turnover		2.72	2.16	2.84	2.37	2.80

February 4, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $3,854,500K ÷ $1,419,700K
= 2.72

PVH Corp's inventory turnover has fluctuated over the past five years. The inventory turnover ratio measures how many times the company's inventory is sold and replaced over a specific period. In this case, PVH Corp's inventory turnover has shown a general upward trend, with a peak of 2.84 in January 2022 and a low of 2.16 in January 2023. The most recent data for February 4, 2024, shows an inventory turnover of 2.72.

A higher inventory turnover ratio indicates that the company is efficiently managing its inventory by selling products quickly and minimizing excess stock. It suggests strong sales and effective inventory management practices. On the other hand, a lower inventory turnover ratio may signal that the company is struggling to sell its inventory or is carrying too much stock, which can tie up cash and lead to potential obsolescence risks.

Overall, PVH Corp's inventory turnover ratio has shown variability over the years, but the recent improvement to 2.72 suggests that the company has been effectively managing its inventory levels and sales operations.