Target Corporation (TGT)
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 | 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 | 111,264,000 | 73,113,000 | 72,452,000 | 71,997,000 |
| Inventory | US$ in thousands | 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 | 8,992,000 | 11,396,000 | 9,122,000 | 9,060,000 |
| Inventory turnover | 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 | 12.37 | 6.42 | 7.94 | 7.95 |
February 3, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $101,806,000K ÷ $11,886,000K
= 8.57
Target Corporation's inventory turnover ratio has fluctuated over the past few years, ranging from a low of 4.94 in January 2023 to a high of 12.37 in February 2020. The inventory turnover ratio measures how efficiently the company is managing its inventory by indicating how many times during a period the company sells and replaces its inventory. Generally, a higher inventory turnover ratio indicates that the company is selling its inventory quickly and efficiently.
It is noteworthy that the inventory turnover ratio has generally been above 6, which suggests that Target has been effectively managing its inventory levels and turning over its inventory multiple times throughout the year. The high values in the range of 8 to 12 indicate strong inventory management practices, with the company efficiently selling and restocking its inventory.
However, the fluctuations in the inventory turnover ratio indicate some variability in Target's inventory management efficiency over time. It is important for the company to closely monitor and manage its inventory levels to ensure optimal performance and profitability. Overall, the inventory turnover ratio trend suggests that Target has been relatively successful in managing its inventory efficiently in recent years.
Peer comparison
Feb 3, 2024
Feb 3, 2024