Target Corporation (TGT)
Inventory turnover
| Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 101,068,000 | 101,647,000 | 101,291,000 | 101,047,000 | 101,806,000 | 101,995,000 | 103,351,000 | 85,343,000 | 66,735,000 | 117,594,000 | 97,532,000 | 97,383,000 | 97,145,000 | 88,234,000 | 87,985,000 | 87,560,000 | 87,084,000 | 74,900,000 | 87,373,000 | 99,444,000 |
| Inventory | US$ in thousands | 12,740,000 | 15,165,000 | 12,604,000 | 11,730,000 | 11,886,000 | 14,731,000 | 12,684,000 | 12,616,000 | 13,499,000 | 17,117,000 | 15,320,000 | 15,083,000 | 13,902,000 | 14,958,000 | 11,259,000 | 10,539,000 | 10,653,000 | 12,712,000 | 8,876,000 | 8,584,000 |
| Inventory turnover | 7.93 | 6.70 | 8.04 | 8.61 | 8.57 | 6.92 | 8.15 | 6.76 | 4.94 | 6.87 | 6.37 | 6.46 | 6.99 | 5.90 | 7.81 | 8.31 | 8.17 | 5.89 | 9.84 | 11.58 |
February 1, 2025 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $101,068,000K ÷ $12,740,000K
= 7.93
The inventory turnover ratio for Target Corporation has fluctuated over the past few years, indicating changes in the efficiency of managing its inventory. From May 2, 2020, to February 1, 2025, the inventory turnover ratio ranged from a low of 4.94 to a high of 11.58.
A high inventory turnover ratio typically suggests that the company is selling its inventory quickly and efficiently, which could indicate strong sales or effective inventory management practices. On the other hand, a low inventory turnover ratio may suggest overstocking, slow-moving inventory, or inefficiencies in the supply chain.
Target Corporation's inventory turnover decreased from 11.58 on May 2, 2020, to 4.94 on January 28, 2023, reflecting a significant decline in the efficiency of its inventory management during that period. Subsequently, the ratio showed some recovery, fluctuating between 6.37 and 8.61 from May 4, 2022, to August 3, 2024.
Overall, Target Corporation's inventory turnover ratio has shown variability, indicating the company's changing ability to manage and sell its inventory effectively. Further analysis would be needed to understand the specific factors contributing to these fluctuations and their implications for the company's operations and financial performance.
Peer comparison
Feb 1, 2025
Feb 1, 2025