Signet Jewelers Ltd (SIG)
Inventory turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 8,148,200 | 8,753,500 | 8,540,200 | 6,482,900 | 7,313,700 |
| Inventory | US$ in thousands | 1,936,600 | 2,150,300 | 2,060,400 | 2,032,500 | 2,331,700 |
| Inventory turnover | 4.21 | 4.07 | 4.14 | 3.19 | 3.14 |
February 3, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $8,148,200K ÷ $1,936,600K
= 4.21
Signet Jewelers Ltd has shown a relatively stable trend in its inventory turnover ratio over the past five years. The inventory turnover ratio measures the efficiency of the company in managing its inventory levels and generating sales from its inventory.
From the data provided, Signet Jewelers Ltd's inventory turnover ratio has ranged between 3.14 and 4.21 over the past five years. The ratio has generally been above 4, indicating that the company is effectively turning over its inventory into sales. A higher inventory turnover ratio suggests that the company is efficiently managing its inventory and may not be holding excess stock, which could reduce carrying costs and minimize the risk of inventory obsolescence.
Overall, the consistent and relatively high inventory turnover ratio of Signet Jewelers Ltd reflects positively on the company's inventory management practices, implying effective inventory control and efficient sales performance.