RH (RH)
Inventory turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,797,980 | 3,004,580 | 2,937,740 | 2,495,320 | 2,401,590 |
| Inventory | US$ in thousands | 708,126 | 761,841 | 710,289 | 520,427 | 438,696 |
| Inventory turnover | 3.95 | 3.94 | 4.14 | 4.79 | 5.47 |
February 3, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,797,980K ÷ $708,126K
= 3.95
The inventory turnover for RH has shown a decreasing trend over the past five years. The ratio decreased from 5.47 in February 2020 to 3.95 in February 2024. This indicates that RH is taking longer to sell its inventory, which may suggest inefficiencies in managing its inventory levels or challenges in selling products. It is important for RH to closely monitor and optimize its inventory turnover to ensure efficient use of resources and maintain profitability.
Peer comparison
Feb 3, 2024