Bath & Body Works Inc. (BBWI)
Cash conversion cycle
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 65.76 | 89.35 | 57.50 | 54.44 | 43.04 | 54.74 | 97.11 | 98.86 | 69.07 | 59.42 | 47.78 | 46.78 | 41.72 | 46.86 | 99.35 | 102.54 | 75.46 | 94.56 | 93.12 | 69.85 |
| Days of sales outstanding (DSO) | days | — | — | — | — | 9.30 | — | — | 12.13 | — | 7.89 | — | 6.09 | — | 10.81 | — | 14.44 | — | 7.43 | — | — |
| Number of days of payables | days | — | — | — | — | 23.04 | — | — | 51.44 | — | 36.90 | — | 25.85 | — | 30.08 | — | 51.07 | — | 57.17 | — | — |
| Cash conversion cycle | days | 65.76 | 89.35 | 57.50 | 54.44 | 29.30 | 54.74 | 97.11 | 59.55 | 69.07 | 30.41 | 47.78 | 27.02 | 41.72 | 27.60 | 99.35 | 65.91 | 75.46 | 44.83 | 93.12 | 69.85 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 65.76 + — – —
= 65.76
The cash conversion cycle of Bath & Body Works Inc. is a metric that represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
Based on the provided data, we can observe fluctuating trends in the cash conversion cycle for Bath & Body Works Inc. Over the analyzed period, the company's cash conversion cycle varied between 27.02 days to 99.35 days.
A lower number of days in the cash conversion cycle indicates the company is converting its investments into cash more quickly, which can be seen in some periods such as January 28, 2023, and February 3, 2024. Conversely, a higher number of days suggests inefficiency in managing inventory and collecting receivables, leading to a longer time to convert investments into cash, as seen in instances such as April 30, 2022, and October 31, 2022.
Analyzing the cash conversion cycle can provide insights into the company's operational efficiency, working capital management, and potential liquidity issues. Overall, Bath & Body Works Inc. should strive to consistently improve and optimize its cash conversion cycle to enhance its financial performance and sustainability.
Peer comparison
Jan 31, 2025