Williams-Sonoma Inc (WSM)
Inventory turnover
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 4,075,357 | 4,009,097 | 3,642,168 | 3,711,477 | 3,363,027 | 3,237,747 | 3,131,842 | 3,180,942 | 4,114,789 | 3,547,202 | 4,343,133 | 3,833,636 | 3,599,136 | 3,566,740 | 3,347,370 | 4,152,267 | 3,544,202 | 4,191,185 | 3,663,793 | 3,377,953 |
| Inventory | US$ in thousands | 1,332,430 | 1,450,140 | 1,247,430 | 1,218,440 | 1,246,370 | 1,246,370 | 1,396,860 | 1,396,860 | 1,300,840 | 1,300,840 | 1,401,620 | 1,456,120 | 1,456,120 | 1,687,900 | 1,687,900 | 1,542,430 | 1,396,140 | 1,396,140 | 1,246,370 | 1,246,370 |
| Inventory turnover | 3.06 | 2.76 | 2.92 | 3.05 | 2.70 | 2.60 | 2.24 | 2.28 | 3.16 | 2.73 | 3.10 | 2.63 | 2.47 | 2.11 | 1.98 | 2.69 | 2.54 | 3.00 | 2.94 | 2.71 |
January 31, 2025 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,075,357K ÷ $1,332,430K
= 3.06
Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory. It indicates the number of times a company's inventory is sold and replaced within a specific period.
Analyzing the inventory turnover of Williams-Sonoma Inc over the last few periods, we observe fluctuations in the ratio. The inventory turnover ratio ranged from a low of 1.98 on October 30, 2022, to a high of 3.16 on July 31, 2023. Generally, a higher inventory turnover ratio is more favorable as it signifies that the company is selling its products quickly and efficiently.
The trend in Williams-Sonoma's inventory turnover shows some variability. For example, an increase in the inventory turnover ratio from 2.54 on May 1, 2022, to 3.00 on April 30, 2022, indicates an improvement in inventory management during that period. On the other hand, a decrease in the ratio from 3.10 on April 30, 2023, to 2.28 on October 29, 2023, suggests a potential slowdown in inventory turnover efficiency.
Overall, it is important for Williams-Sonoma Inc to closely monitor its inventory turnover ratio to ensure optimal management of its inventory levels. A consistently high and stable inventory turnover ratio can indicate effective inventory management practices, which can lead to improved profitability and cash flow for the company.