Ross Stores Inc (ROST)

Inventory turnover

		Jan 31, 2025	Feb 3, 2024	Jan 31, 2024	Jan 31, 2023	Jan 28, 2023
Cost of revenue	US$ in thousands	15,260,500	18,069,300	14,801,600	13,946,200	16,705,500
Inventory	US$ in thousands	2,444,510	2,192,220	2,192,220	2,023,500	2,023,500
Inventory turnover		6.24	8.24	6.75	6.89	8.26

January 31, 2025 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $15,260,500K ÷ $2,444,510K
= 6.24

Based on the provided data for Ross Stores Inc, the inventory turnover ratio has shown fluctuations over the given periods. The inventory turnover ratio measures how efficiently the company is managing its inventory by indicating the number of times the inventory is sold and replaced over a specific period.

In January 2023, the inventory turnover ratio was 8.26, indicating that Ross Stores Inc was able to turn over its inventory approximately 8.26 times during that period. This suggests efficient inventory management and a high demand for the company's products.

However, in subsequent periods, the inventory turnover ratio decreased. By January 2025, the ratio had decreased to 6.24, signifying a lower rate of inventory turnover compared to previous years.

The fluctuations in the inventory turnover ratio could be attributed to various factors such as changes in consumer demand, seasonality in the retail industry, inventory management practices, or supply chain disruptions.

Overall, while the inventory turnover ratio has shown some volatility, it is essential for Ross Stores Inc to closely monitor and optimize its inventory management strategies to ensure efficient operations and profitability in the future.