Target Corporation (TGT)

Inventory turnover

		Feb 1, 2025	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021
Cost of revenue	US$ in thousands	101,068,000	101,807,000	105,338,000	97,146,000	87,084,000
Inventory	US$ in thousands	12,740,000	11,886,000	13,499,000	13,902,000	10,653,000
Inventory turnover		7.93	8.57	7.80	6.99	8.17

February 1, 2025 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $101,068,000K ÷ $12,740,000K
= 7.93

Analyzing Target Corporation's inventory turnover over the past five years, we observe fluctuations in the efficiency of managing its inventory. In January 2021, the inventory turnover ratio was 8.17, indicating that Target sold and replenished its inventory 8.17 times during the year. However, this ratio decreased to 6.99 by January 2022, suggesting a slight decrease in the rate at which inventory was turned over.

Subsequently, there was an improvement in inventory turnover to 7.80 in January 2023, signifying increased efficiency in managing inventory levels. The ratio further increased to 8.57 by February 2024, indicating a notable improvement in inventory turnover efficiency. However, by February 2025, the inventory turnover ratio dipped slightly to 7.93.

Overall, fluctuations in Target Corporation's inventory turnover suggest varying levels of effectiveness in managing inventory and sales operations over the years. Further analysis of the factors influencing these fluctuations could provide insights into the company's operational efficiency and strategic inventory management decisions.