Urban Outfitters Inc (URBN)
Inventory turnover
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,425,960 | 3,361,610 | 3,054,810 | 2,572,350 | 2,729,350 |
| Inventory | US$ in thousands | 550,242 | 587,510 | 569,699 | 389,618 | 409,534 |
| Inventory turnover | 6.23 | 5.72 | 5.36 | 6.60 | 6.66 |
January 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $3,425,960K ÷ $550,242K
= 6.23
Over the past five fiscal years, Urban Outfitters Inc's inventory turnover ratio has shown fluctuations. The inventory turnover ratio measures the efficiency of a company in managing its inventory by indicating how many times the company sells and replaces its inventory within a given period.
In January 2024, the inventory turnover ratio was 6.23, indicating that the company generated sales 6.23 times relative to its average inventory balance during the year. This shows an improvement from the previous year's ratio of 5.72 but is lower compared to the ratios in 2020 and 2021.
The increase in the inventory turnover ratio from 2023 to 2024 suggests that Urban Outfitters Inc was able to sell its inventory at a faster rate, potentially reducing carrying costs and minimizing the risk of inventory obsolescence.
However, it is essential to consider the reasons behind these fluctuations in the inventory turnover ratio, such as changes in consumer demand, supply chain disruptions, or inventory management practices, to gain a deeper understanding of Urban Outfitters Inc's operational efficiency.
Peer comparison
Jan 31, 2024