Tractor Supply Company (TSCO)
Inventory turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 9,327,530 | 9,603,500 | 9,546,990 | 9,394,210 | 9,232,510 | 8,788,470 | 8,616,100 | 8,413,020 | 8,253,960 | 15,680,070 | 15,406,070 | 15,111,510 | 14,600,890 | 6,426,050 | 6,057,330 | 5,570,860 | 5,480,160 | 5,447,120 | 5,385,710 | 5,296,510 |
| Inventory | US$ in thousands | 2,645,850 | 2,834,250 | 2,660,050 | 3,030,710 | 2,709,600 | 2,678,190 | 2,485,140 | 2,568,180 | 2,191,190 | 2,199,770 | 1,992,820 | 2,084,680 | 1,783,270 | 1,915,040 | 1,688,510 | 1,905,910 | 1,602,780 | 1,812,770 | 1,733,150 | 1,881,330 |
| Inventory turnover | 3.53 | 3.39 | 3.59 | 3.10 | 3.41 | 3.28 | 3.47 | 3.28 | 3.77 | 7.13 | 7.73 | 7.25 | 8.19 | 3.36 | 3.59 | 2.92 | 3.42 | 3.00 | 3.11 | 2.82 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $9,327,530K ÷ $2,645,850K
= 3.53
Tractor Supply Company's inventory turnover has displayed fluctuations over the past few quarters. The inventory turnover ratio indicates how many times a company's inventory is sold and replaced over a specific period. In this case, Tractor Supply Company's inventory turnover ratio has ranged from 2.82 to 8.19 over the last five years.
In recent quarters, the inventory turnover ratio has been relatively stable, with values ranging from 3.10 to 3.59. An inventory turnover ratio around 3 suggests that Tractor Supply Company is managing its inventory efficiently, as it indicates that inventory is sold and replenished approximately three times during the period.
However, there were significant fluctuations in the inventory turnover ratio in the previous periods, with ratios as high as 8.19 in December 2020 and as low as 2.82 in June 2019. A high inventory turnover ratio may indicate that inventory is being managed effectively, leading to lower carrying costs and potential stockouts. On the other hand, a lower ratio could suggest overstocking or slow-moving inventory, impacting liquidity and profitability.
Overall, while the recent inventory turnover ratios of Tractor Supply Company indicate efficient inventory management, it is essential to monitor for any significant deviations in the future to ensure optimal utilization of resources and maintain healthy financial performance.
Peer comparison
Dec 31, 2023
Dec 31, 2023