Williams-Sonoma Inc (WSM)
Inventory turnover
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Nov 3, 2019 | Aug 4, 2019 | May 5, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,069,408 | 2,014,847 | 2,076,357 | 2,158,726 | 2,181,911 | 2,245,113 | 2,239,438 | 2,206,238 | 2,178,847 | 2,141,319 | 2,007,080 | 1,837,633 | 1,741,192 | 1,667,097 | 1,652,399 | 1,684,254 | 1,673,218 | 1,693,246 | 1,677,565 | 1,669,645 |
| Inventory | US$ in thousands | 1,246,370 | 1,396,860 | 1,300,840 | 1,401,620 | 1,456,120 | 1,687,900 | 1,542,430 | 1,396,140 | 1,246,370 | 1,272,030 | 1,170,560 | 1,087,530 | 1,006,300 | 1,125,480 | 1,042,340 | 1,070,680 | 1,100,540 | 1,258,540 | 1,187,730 | 1,155,430 |
| Inventory turnover | 1.66 | 1.44 | 1.60 | 1.54 | 1.50 | 1.33 | 1.45 | 1.58 | 1.75 | 1.68 | 1.71 | 1.69 | 1.73 | 1.48 | 1.59 | 1.57 | 1.52 | 1.35 | 1.41 | 1.45 |
January 28, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,069,408K ÷ $1,246,370K
= 1.66
Williams-Sonoma Inc's inventory turnover has varied over the past few quarters, ranging from a low of 1.33 to a high of 1.75. The average inventory turnover for the period is 1.53. This indicates that, on average, Williams-Sonoma Inc is turning over its inventory approximately 1.53 times in a year.
A higher inventory turnover ratio generally indicates that a company is efficiently managing its inventory and selling products quickly. Conversely, a lower inventory turnover ratio may suggest inefficiencies in managing inventory or sluggish sales.
It is important for Williams-Sonoma Inc to closely monitor its inventory turnover ratio to ensure that it is at an optimal level. This will help the company maintain a healthy balance between stocking enough inventory to meet customer demand while avoiding excess inventory that can tie up capital and lead to higher storage costs.