The TJX Companies Inc (TJX)
Inventory turnover
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 39,112,000 | 49,378,000 | 37,951,000 | 36,149,000 | 46,173,000 |
| Inventory | US$ in thousands | 6,421,000 | 5,965,000 | 5,965,000 | 5,819,000 | 5,819,000 |
| Inventory turnover | 6.09 | 8.28 | 6.36 | 6.21 | 7.93 |
January 31, 2025 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $39,112,000K ÷ $6,421,000K
= 6.09
The inventory turnover ratio for The TJX Companies Inc has shown some fluctuations over the past few years. It was 7.93 on January 28, 2023, indicating that the company turned over its inventory approximately 7.93 times during that period. Subsequently, the ratio decreased to 6.21 on January 31, 2023 before increasing to 6.36 on January 31, 2024. The most recent data point on January 31, 2025, shows a decrease to 6.09.
A higher inventory turnover ratio generally indicates that a company is efficiently managing its inventory by selling products quickly, which can be positive as it reduces the risk of inventory obsolescence. However, a declining ratio may suggest possible inefficiencies in managing inventory levels or potential challenges in sales.
Overall, it is important for The TJX Companies Inc to continue monitoring and analyzing its inventory turnover ratio to ensure optimal inventory management and operational efficiency in the future.
Peer comparison
Jan 31, 2025