Victoria's Secret & Co (VSCO)
Inventory turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | ||
|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,961,000 | 5,866,000 | 5,915,000 |
| Inventory | US$ in thousands | 985,000 | 1,052,000 | 949,000 |
| Inventory turnover | 6.05 | 5.58 | 6.23 |
February 3, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,961,000K ÷ $985,000K
= 6.05
The inventory turnover ratio for Victoria's Secret & Co has been relatively stable over the past three years. In February 3, 2024, the ratio was 6.05, indicating that the company generated sales approximately 6.05 times during the year for every dollar invested in inventory. This was a slight increase from the previous year's ratio of 5.58 on January 28, 2023.
The company's inventory turnover of 6.05 in 2024 suggests that Victoria's Secret & Co efficiently manages its inventory levels, converting inventory into sales effectively. This indicates strong demand for their products and efficient inventory management practices, which can help minimize carrying costs and potential obsolescence.
Comparing the inventory turnover ratio to the industry average can provide further insights into Victoria's Secret & Co's performance in managing inventory efficiently. However, overall, the consistent positive trend in the inventory turnover ratio reflects positively on the company's operational efficiency and sales performance.
Peer comparison
Feb 3, 2024