Walmart Inc (WMT)

Inventory turnover

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Cost of revenue	US$ in thousands	511,753,000	490,142,000	463,721,000	429,000,000	420,315,000
Inventory	US$ in thousands	56,435,000	54,892,000	56,576,000	56,511,000	44,949,000
Inventory turnover		9.07	8.93	8.20	7.59	9.35

January 31, 2025 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $511,753,000K ÷ $56,435,000K
= 9.07

Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory. For Walmart Inc, the trend in inventory turnover over the past five years indicates fluctuations in inventory management efficiency.

- As of January 31, 2021, Walmart's inventory turnover ratio was 9.35. This high ratio suggests that Walmart was selling its inventory multiple times during the year, indicating efficient inventory management.

- In the following year, as of January 31, 2022, the inventory turnover ratio decreased to 7.59. This decline may indicate a slower rate of inventory turnover compared to the previous year, which could be attributed to various factors such as changes in consumer demand or supply chain disruptions.

- By January 31, 2023, the inventory turnover ratio showed a slight improvement, standing at 8.20. This increase suggests that Walmart was able to generate more sales relative to its average inventory during the year, indicating enhanced inventory management efficiency compared to the previous year.

- The inventory turnover ratio continued to rise, reaching 8.93 as of January 31, 2024. This upward trend indicates Walmart's ability to more efficiently move its inventory off the shelves and convert it into sales, potentially optimizing working capital and reducing carrying costs.

- As of the most recent date, January 31, 2025, Walmart's inventory turnover ratio was 9.07. This figure suggests that Walmart maintained a high level of efficiency in managing its inventory, similar to the levels seen in 2021 and 2024, reflecting robust operational performance.

Overall, despite some fluctuations, Walmart Inc has generally shown strong inventory management practices over the past five years, with notable improvements in inventory turnover efficiency. The company's ability to efficiently utilize its inventory to drive sales and navigate market dynamics underscores its effective operational strategies.