RH (RH)
Inventory turnover
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,765,820 | 2,797,980 | 1,640,110 | 1,778,490 | 3,004,580 |
| Inventory | US$ in thousands | 1,019,590 | 708,126 | 754,126 | 801,841 | 761,841 |
| Inventory turnover | 1.73 | 3.95 | 2.17 | 2.22 | 3.94 |
January 31, 2025 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,765,820K ÷ $1,019,590K
= 1.73
The inventory turnover for RH over the reported periods fluctuated, indicating changes in how efficiently the company is managing its inventory. The January 28, 2023, turnover rate was 3.94, signifying that the company sold and replaced its inventory nearly four times during the year. However, this ratio decreased to 2.22 by January 31, 2023, implying a slower turnover rate.
Subsequently, there was a slight decline in inventory turnover to 2.17 by January 31, 2024, before experiencing a significant improvement to 3.95 by February 3, 2024. This indicates an impressive increase in the efficiency of inventory management during this period.
By January 31, 2025, the inventory turnover dropped to 1.73, suggesting a decrease in the rate at which inventory is being sold and replaced by the company. Overall, a higher inventory turnover ratio generally indicates better inventory management and liquidity, while a lower ratio may indicate potential issues such as overstocking or slowing sales.