RH (RH)
Inventory turnover
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,793,293 | 2,777,619 | 2,789,114 | 2,897,060 | 3,011,926 | 3,029,596 | 3,046,394 | 3,021,690 | 2,935,801 | 2,877,776 | 2,878,336 | 2,716,735 | 2,495,319 | 2,442,551 | 2,296,082 | 2,324,189 | 1,868,272 | 1,876,846 | 1,892,822 | 1,853,029 |
| Inventory | US$ in thousands | 708,126 | 718,959 | 737,663 | 766,301 | 761,841 | 819,299 | 859,078 | 817,327 | 710,289 | 633,591 | 645,987 | — | 520,427 | 497,076 | — | — | 438,696 | — | — | — |
| Inventory turnover | 3.94 | 3.86 | 3.78 | 3.78 | 3.95 | 3.70 | 3.55 | 3.70 | 4.13 | 4.54 | 4.46 | — | 4.79 | 4.91 | — | — | 4.26 | — | — | — |
February 3, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,793,293K ÷ $708,126K
= 3.94
Inventory turnover is a critical financial ratio that measures how efficiently a company is managing its inventory. RH's inventory turnover has exhibited fluctuations over the past few quarters, ranging from a low of 3.55 to a high of 4.91. A higher inventory turnover ratio generally indicates that the company is selling its inventory more quickly, which is a positive sign of efficient inventory management.
The trend in RH's inventory turnover shows variability, with some quarters experiencing lower turnover rates and others displaying higher turnover rates. This variability could be influenced by seasonal factors, changes in consumer demand, or inventory management strategies.
Overall, RH's inventory turnover has remained within a reasonable range, indicating a level of consistency in managing inventory levels. Future monitoring of inventory turnover will be important to ensure efficient use of resources and continued profitability.
Peer comparison
Feb 3, 2024
Feb 3, 2024