Ross Stores Inc (ROST)

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	18,069,280	17,446,370	17,189,040	16,878,380	16,705,490	16,579,450	16,513,800	16,575,860	16,583,370	15,901,540	15,439,060	13,910,020	12,341,870	12,320,320	12,102,080	12,938,280	13,892,900	13,632,490	13,370,360	13,156,100
Inventory	US$ in thousands	2,192,220	2,613,810	2,300,060	2,241,740	2,023,500	2,494,000	2,716,880	2,673,550	2,262,270	2,231,240	1,751,030	1,697,990	1,508,980	1,630,390	1,117,980	1,757,260	1,832,340	2,168,800	1,835,870	1,813,770
Inventory turnover		8.24	6.67	7.47	7.53	8.26	6.65	6.08	6.20	7.33	7.13	8.82	8.19	8.18	7.56	10.82	7.36	7.58	6.29	7.28	7.25

February 3, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $18,069,280K ÷ $2,192,220K
= 8.24

Inventory turnover measures how efficiently a company is managing its inventory. Ross Stores Inc's inventory turnover has varied over the past few years, ranging from a low of 6.08 to a high of 10.82. The company's inventory turnover ratio indicates that, on average, Ross Stores Inc was able to sell and replace its inventory approximately 7 to 8 times a year during the given period. This suggests that Ross Stores Inc has a relatively efficient inventory management system in place, allowing for a faster turnover of inventory compared to some of its competitors in the retail industry. The increase in inventory turnover from 6.08 to 10.82 in a span of a few quarters may indicate improved sales performance or better inventory management practices at Ross Stores Inc.