Signet Jewelers Ltd (SIG)
Inventory turnover
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 8,119,100 | 8,148,200 | 8,753,500 | 8,540,200 | 6,482,900 |
| Inventory | US$ in thousands | 1,937,300 | 1,936,600 | 2,150,300 | 2,060,400 | 2,032,500 |
| Inventory turnover | 4.19 | 4.21 | 4.07 | 4.14 | 3.19 |
February 1, 2025 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $8,119,100K ÷ $1,937,300K
= 4.19
Signet Jewelers Ltd's inventory turnover has shown a positive trend over the past few years. In January 2021, the inventory turnover stood at 3.19, indicating that the company's inventory was being sold and replenished approximately 3.19 times during the year. Subsequently, the turnover ratio improved to 4.14 by January 2022, and then slightly decreased to 4.07 by January 2023.
Notably, by February 3, 2024, the inventory turnover ratio increased to 4.21, reflecting a more efficient management of inventory. In the most recent period, as of February 1, 2025, the turnover ratio remained high at 4.19, suggesting that Signet Jewelers is effectively managing its inventory levels and efficiently converting inventory into sales.
Overall, the increasing trend in the inventory turnover ratio indicates that Signet Jewelers Ltd has been successful in managing its inventory effectively, ensuring a balance between stock levels and sales turnover. A higher inventory turnover ratio generally signifies a more efficient use of inventory and may also indicate strong sales performance.