Tractor Supply Company (TSCO)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 9,486,670 | 9,327,520 | 9,232,510 | 8,253,950 | 6,858,800 |
| Inventory | US$ in thousands | 2,840,180 | 2,645,850 | 2,709,600 | 2,191,190 | 1,783,270 |
| Inventory turnover | 3.34 | 3.53 | 3.41 | 3.77 | 3.85 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $9,486,670K ÷ $2,840,180K
= 3.34
Tractor Supply Company's inventory turnover has shown a gradual decline over the past five years, decreasing from 3.85 in December 2020 to 3.34 in December 2024. This indicates that the company is taking longer to sell its inventory, which may suggest inefficiencies in managing its stock levels or challenges in accurately forecasting demand. A lower inventory turnover ratio could potentially lead to increased storage costs, risk of obsolescence, or tied-up capital in unsold inventory. Tractor Supply Company may need to reassess its inventory management strategies to improve efficiency and optimize its working capital utilization.
Peer comparison
Dec 31, 2024