PVH Corp (PVH)

Inventory turnover

		Feb 4, 2024	Oct 29, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Nov 1, 2020	Aug 2, 2020	May 3, 2020	Feb 2, 2020	Nov 3, 2019	Aug 4, 2019	May 5, 2019
Cost of revenue (ttm)	US$ in thousands	3,854,500	3,964,000	3,947,100	3,924,900	3,901,300	3,816,500	3,797,300	3,864,400	3,830,600	3,780,700	3,810,100	3,527,900	3,355,800	3,595,200	3,759,900	4,138,300	4,520,600	4,446,200	4,424,400	4,385,300
Inventory	US$ in thousands	1,419,700	1,476,900	1,795,500	1,718,100	1,802,600	1,821,200	1,689,900	1,389,700	1,348,500	1,379,600	1,421,300	1,450,900	1,417,100	1,483,500	1,642,200	1,561,200	1,615,700	1,768,100	1,862,100	1,608,400
Inventory turnover		2.72	2.68	2.20	2.28	2.16	2.10	2.25	2.78	2.84	2.74	2.68	2.43	2.37	2.42	2.29	2.65	2.80	2.51	2.38	2.73

February 4, 2024 calculation

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

Inventory turnover measures how effectively a company manages its inventory by indicating the number of times the company sells and replaces its inventory within a specific period. A higher inventory turnover generally indicates that the company is efficiently managing its inventory.

For PVH Corp, the inventory turnover ratio fluctuated over the past 20 reporting periods, ranging from a low of 2.10 to a high of 2.84. While the ratios varied, they generally stayed within a relatively narrow range, indicating consistent inventory management practices.

The average inventory turnover for PVH Corp over these periods stands at approximately 2.53. This suggests that, on average, PVH Corp sold and replaced its inventory about 2.53 times within a year. This figure can be used as a benchmark to evaluate future inventory turnover ratios and assess any deviations from the norm.

Overall, PVH Corp's inventory turnover ratio shows that the company has been reasonably effective in managing its inventory levels and efficiently turning inventory into sales over the analyzed periods. However, it is essential for analysts to monitor any significant changes in the inventory turnover ratio over time to understand potential shifts in the company's inventory management strategies and operational efficiency.