Signet Jewelers Ltd (SIG)
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 | 8,146,400 | 4,481,000 | 4,636,300 | 4,682,700 | 4,895,700 | 8,894,100 | 8,793,400 | 8,797,800 | 7,019,700 | 6,080,800 | 5,907,900 | 4,355,400 | 4,461,700 | 4,655,700 | 4,623,700 | 4,651,100 | 5,977,600 | 3,985,100 | 3,579,400 | 4,524,800 |
| Inventory | US$ in thousands | 1,936,600 | 2,095,700 | 2,093,900 | 2,183,500 | 2,150,300 | 2,429,000 | 2,190,800 | 2,216,200 | 2,060,400 | 2,148,300 | 2,004,700 | 2,019,000 | 2,032,500 | 2,174,000 | 2,193,100 | 2,392,200 | 2,331,700 | 2,519,400 | 2,272,100 | 2,394,200 |
| Inventory turnover | 4.21 | 2.14 | 2.21 | 2.14 | 2.28 | 3.66 | 4.01 | 3.97 | 3.41 | 2.83 | 2.95 | 2.16 | 2.20 | 2.14 | 2.11 | 1.94 | 2.56 | 1.58 | 1.58 | 1.89 |
February 3, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $8,146,400K ÷ $1,936,600K
= 4.21
The inventory turnover ratio for Signet Jewelers Ltd has shown fluctuations over the past several quarters. The ratio indicates how many times a company's inventory is sold and replaced within a given period.
The inventory turnover was at its highest of 4.21 on Feb 3, 2024, which may suggest that the company efficiently manages its inventory and sells products quickly. However, this figure decreased in the following quarter, dropping to 2.14 on Oct 28, 2023. This sharp decline could indicate issues such as excess inventory or slowing sales.
Looking at the historical data, the inventory turnover has generally ranged between 2 and 4 times a year. It's important to note that a higher turnover is generally preferred as it signifies efficient inventory management and quicker sales cycles.
Analyzing the trend, it appears that the company has experienced some volatility in its inventory turnover ratios. By closely monitoring this ratio, Signet Jewelers Ltd can better assess its inventory management practices and make necessary adjustments to optimize operational efficiency and financial performance.