Walgreens Boots Alliance Inc (WBA)
Inventory turnover
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 163,187,000 | 147,332,000 | 149,875,000 | 146,955,000 | 143,577,000 | 141,322,000 | 134,326,000 | 133,561,000 | 133,433,000 | 132,644,000 | 136,566,000 | 102,799,000 | 108,233,000 | 110,885,000 | 107,474,000 | 140,401,000 | 135,362,000 | 133,841,000 | 132,888,000 | 125,781,000 |
| Inventory | US$ in thousands | 8,557,000 | 9,454,000 | 8,257,000 | 8,164,000 | 8,757,000 | 9,322,000 | 8,353,000 | 8,520,000 | 8,947,000 | 9,475,000 | 8,159,000 | 8,333,000 | 8,541,000 | 11,180,000 | 7,917,000 | 9,563,000 | 9,652,000 | 10,536,000 | 9,333,000 | 9,874,000 |
| Inventory turnover | 19.07 | 15.58 | 18.15 | 18.00 | 16.40 | 15.16 | 16.08 | 15.68 | 14.91 | 14.00 | 16.74 | 12.34 | 12.67 | 9.92 | 13.58 | 14.68 | 14.02 | 12.70 | 14.24 | 12.74 |
February 29, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $163,187,000K ÷ $8,557,000K
= 19.07
The inventory turnover ratio for Walgreens Boots Alliance Inc has fluctuated over the past few years, indicating changes in the efficiency of managing inventory. In the most recent fiscal period ending February 29, 2024, the company's inventory turnover was 19.07, showing that inventory was sold and replaced approximately 19 times during the year. This represents an improvement compared to the earlier period, indicating a more efficient management of inventory.
Looking back at historical data, we observe variations in the inventory turnover ratio, suggesting periods of stronger or weaker inventory management. The company achieved its lowest inventory turnover of 9.92 in the period ending February 28, 2021, which may imply slower sales relative to inventory levels. Subsequently, there was an upward trend in inventory turnover, reaching a peak of 19.07 in the latest period.
Overall, the increasing inventory turnover ratio is a positive sign of efficient inventory management, as higher turnover ratios generally indicate that inventory is effectively sold and replenished. However, it is essential for the company to maintain this efficiency to ensure optimal utilization of resources and mitigate the risk of obsolete or excess inventory.
Peer comparison
Feb 29, 2024
Feb 29, 2024
See also:
Walgreens Boots Alliance Inc Inventory Turnover (Quarterly Data)