Bath & Body Works Inc. (BBWI)
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 | 65.78 | 42.12 | 61.81 | 60.11 | 41.85 |
| Days of sales outstanding (DSO) | days | — | 11.49 | — | — | 11.44 |
| Number of days of payables | days | — | 22.55 | — | — | 26.86 |
| Cash conversion cycle | days | 65.78 | 31.07 | 61.81 | 60.11 | 26.43 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 65.78 + — – —
= 65.78
The cash conversion cycle of Bath & Body Works Inc. has shown some fluctuations over the years. It started at 26.43 days on January 28, 2023, indicating a relatively efficient cash conversion process. However, by the end of January 2023, the cycle increased significantly to 60.11 days, suggesting potential challenges in managing cash flow and working capital.
In the following year, the cash conversion cycle continued to rise to 61.81 days by January 31, 2024, indicating a further delay in converting resources into cash. However, there was a notable improvement by February 3, 2024, when the cycle decreased to 31.07 days, possibly reflecting a more effective management of operating assets and liabilities.
Unfortunately, the cycle worsened again by January 31, 2025, reaching its highest point at 65.78 days. This extended cycle could signal difficulties in efficiently managing cash flow, inventory, and receivables within the business.
Overall, the fluctuating trend in Bath & Body Works Inc.'s cash conversion cycle highlights the importance of closely monitoring working capital components to optimize cash flow and operational efficiency.
Peer comparison
Jan 31, 2025