Academy Sports Outdoors Inc (ASO)
Cash conversion cycle
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 121.81 | 79.40 | 107.65 | 112.01 | 84.35 |
| Days of sales outstanding (DSO) | days | — | 1.16 | — | — | 0.95 |
| Number of days of payables | days | — | 35.97 | — | — | 45.11 |
| Cash conversion cycle | days | 121.81 | 44.58 | 107.65 | 112.01 | 40.19 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 121.81 + — – —
= 121.81
The cash conversion cycle of Academy Sports Outdoors Inc has shown variability over the period analyzed. In January 2023, the cash conversion cycle was 40.19 days, indicating a relatively efficient management of cash, inventory, and receivables. However, by January 2025, the cash conversion cycle had increased significantly to 121.81 days, suggesting a longer period for the company to convert its investments in inventory and receivables back into cash.
The spike in the cash conversion cycle between January 2023 and January 2024, reaching 112.01 days, may highlight potential challenges in managing working capital efficiently during that period. However, there was a notable improvement by February 3, 2024, with the cycle decreasing to 44.58 days, indicating a more effective utilization of cash resources and quicker turnover of inventory and receivables.
Overall, the trend in the cash conversion cycle for Academy Sports Outdoors Inc demonstrates fluctuations, with periods of efficiency and inefficiency in managing the conversion of resources into cash. This metric is crucial for assessing the company's operational efficiency and working capital management practices.
Peer comparison
Jan 31, 2025