Tractor Supply Company (TSCO)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 9,327,520 | 9,232,510 | 8,253,950 | 6,858,800 | 5,480,160 |
| Inventory | US$ in thousands | 2,645,850 | 2,709,600 | 2,191,190 | 1,783,270 | 1,602,780 |
| Inventory turnover | 3.53 | 3.41 | 3.77 | 3.85 | 3.42 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $9,327,520K ÷ $2,645,850K
= 3.53
Tractor Supply Company's inventory turnover ratio has shown some fluctuations over the past five years. The trend indicates a slight decrease in inventory turnover from 3.42 in 2019 to 3.41 in 2022, followed by an increase to 3.77 in 2021. However, this was then followed by a decrease to 3.53 in 2023. Overall, the company has maintained a relatively stable inventory turnover ratio ranging from 3.41 to 3.85 over the five-year period, suggesting that the company efficiently manages its inventory by converting it into sales. While the recent decrease in 2023 may indicate a potential slower movement of inventory, further analysis is required to understand the underlying factors influencing this trend.
Peer comparison
Dec 31, 2023