The TJX Companies Inc (TJX)
Inventory turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 49,378,000 | 46,173,000 | 44,653,000 | 32,412,700 | 38,158,800 |
| Inventory | US$ in thousands | 5,965,000 | 5,819,000 | 5,962,000 | 4,337,390 | 4,872,590 |
| Inventory turnover | 8.28 | 7.93 | 7.49 | 7.47 | 7.83 |
February 3, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $49,378,000K ÷ $5,965,000K
= 8.28
The inventory turnover ratio for The TJX Companies Inc has shown a stable trend over the past five years. The ratio has ranged from 7.47 to 8.28 during this period, indicating that the company is efficient in managing its inventory levels and converting them into sales.
A higher inventory turnover ratio implies that the company is selling its products more quickly, which is generally a positive sign as it reduces the risk of obsolete inventory and improves cash flow. The consistent range between 7.47 and 8.28 suggests that The TJX Companies Inc has been effectively managing its inventory levels to meet consumer demand and optimize operational performance.
It is worth noting that inventory turnover ratios can vary across industries, so it would be beneficial to compare The TJX Companies Inc's ratio to industry benchmarks to gain a more comprehensive understanding of its inventory management efficiency.
Peer comparison
Feb 3, 2024