Walmart Inc (WMT)

Inventory turnover

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Cost of revenue (ttm)	US$ in thousands	490,142,000	483,740,000	478,170,000	472,158,000	463,721,000	453,820,000	443,230,000	432,575,000	429,000,000	428,739,000	424,055,000	421,561,000	420,315,000	412,802,000	408,363,000	403,597,000	394,605,000	391,764,000	388,980,000	386,628,000
Inventory	US$ in thousands	54,892,000	63,951,000	56,722,000	56,932,000	56,576,000	64,706,000	59,921,000	61,229,000	56,511,000	57,484,000	47,754,000	46,383,000	44,949,000	51,842,000	41,084,000	41,217,000	44,435,000	51,546,000	44,134,000	44,751,000
Inventory turnover		8.93	7.56	8.43	8.29	8.20	7.01	7.40	7.06	7.59	7.46	8.88	9.09	9.35	7.96	9.94	9.79	8.88	7.60	8.81	8.64

January 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $490,142,000K ÷ $54,892,000K
= 8.93

Over the past 20 quarters, Walmart Inc has maintained a fluctuating but generally healthy inventory turnover ratio, which measures how quickly the company is selling through its inventory. The inventory turnover ratio has ranged from a low of 7.01 to a high of 9.94, with an average value of approximately 8.36.

Typically, a higher inventory turnover ratio indicates that a company is efficiently managing its inventory by quickly selling products and restocking them. Walmart's inventory turnover ratios mostly fall within the range of 7 to 9, which suggests that the company effectively balances its inventory levels with customer demand.

In analyzing the trend over time, we can observe some fluctuations in the inventory turnover ratio, but there appears to be a general upward trend since the beginning of 2020. This improvement indicates that Walmart has been more effective at managing its inventory levels and optimizing its supply chain processes to meet consumer demand.

Overall, based on the inventory turnover data provided, Walmart Inc demonstrates a solid ability to efficiently manage its inventory and turn it into sales, which is a positive indicator of operational efficiency for the company.