RH (RH)
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 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 29, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,765,821 | 2,026,114 | 1,993,031 | 1,948,908 | 2,268,401 | 1,978,905 | 2,240,895 | 2,221,737 | 2,164,999 | 2,147,686 | 2,162,615 | 2,512,908 | 2,307,633 | 2,691,785 | 2,456,266 | 2,161,593 | 2,405,089 | 2,119,018 | 2,419,017 | 2,472,963 |
| Inventory | US$ in thousands | 1,019,590 | 978,553 | 917,331 | 821,506 | 708,126 | 780,535 | 718,959 | 718,959 | 737,663 | 737,663 | 766,301 | 766,301 | 801,841 | 761,841 | 819,299 | 873,315 | 859,078 | 817,327 | 734,289 | 710,289 |
| Inventory turnover | 1.73 | 2.07 | 2.17 | 2.37 | 3.20 | 2.54 | 3.12 | 3.09 | 2.93 | 2.91 | 2.82 | 3.28 | 2.88 | 3.53 | 3.00 | 2.48 | 2.80 | 2.59 | 3.29 | 3.48 |
January 31, 2025 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,765,821K ÷ $1,019,590K
= 1.73
The inventory turnover ratio for RH provides insight into how efficiently the company manages its inventory. A higher ratio typically indicates that RH is selling its inventory quickly, while a lower ratio may suggest issues with overstocking or slow sales.
The data shows variability in RH's inventory turnover over time, ranging from a low of 1.73 in January 31, 2025, to a high of 3.53 in January 28, 2023. It is important to note that inventory turnover can be influenced by seasonal factors, changes in consumer demand, or supply chain disruptions.
From the trend observed in the data, RH's inventory turnover appears to fluctuate without a clear upward or downward trend. However, the company generally maintains a turnover ratio above 2, indicating a decent level of efficiency in managing its inventory.
Analyzing the inventory turnover ratio in conjunction with other financial metrics can provide a more comprehensive understanding of RH's operational performance and effectiveness in inventory management. It is also important to compare this ratio with industry benchmarks to assess how RH's performance in inventory turnover stacks up against its peers.