The TJX Companies Inc (TJX)

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	49,378,000	47,881,700	46,972,200	46,249,600	46,173,000	45,537,700	45,862,400	45,867,800	44,653,030	42,138,330	40,054,540	36,005,000	32,412,750	33,214,150	33,491,700	35,546,830	38,158,740	37,192,840	36,642,930	36,221,070
Inventory	US$ in thousands	5,965,000	8,285,000	6,585,000	6,441,000	5,819,000	8,329,000	7,083,000	6,990,000	5,962,000	6,633,330	5,086,630	5,114,640	4,337,390	4,997,510	3,744,060	4,945,720	4,872,590	6,274,780	5,087,050	5,057,200
Inventory turnover		8.28	5.78	7.13	7.18	7.93	5.47	6.47	6.56	7.49	6.35	7.87	7.04	7.47	6.65	8.95	7.19	7.83	5.93	7.20	7.16

February 3, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $49,378,000K ÷ $5,965,000K
= 8.28

The inventory turnover ratio for The TJX Companies Inc has fluctuated over the past few years, ranging from a low of 5.47 to a high of 8.95. This ratio indicates the efficiency with which the company manages its inventory by comparing the cost of goods sold to the average inventory level. A higher turnover ratio suggests that the company is selling its inventory quickly and effectively.

The average inventory turnover for The TJX Companies Inc over the period in question is approximately 7.17. This indicates that, on average, the company is able to sell and replace its entire inventory around 7.17 times within a year. A consistently high turnover ratio can be a positive sign, as it suggests that the company is effectively managing its inventory levels and minimizing holding costs.

Overall, The TJX Companies Inc has shown a relatively strong inventory turnover performance, with the ratio staying above 7 in most periods. This demonstrates the company's ability to efficiently manage its inventory and suggests effective sales and inventory management practices.