BJs Wholesale Club Holdings Inc (BJ)

Short-term

Turnover ratios

BJs Wholesale Club Holdings Inc's inventory turnover has been consistently high over the past five years, ranging from 9.95 to 11.52 times annually. This indicates that the company efficiently manages its inventory and sells its products quickly, which is a positive sign for the business.

The receivables turnover ratio has also shown a stable trend, with values fluctuating between 63.92 and 95.50. A higher receivables turnover ratio suggests that the company collects its accounts receivable more quickly, which is favorable for maintaining healthy cash flows.

In terms of payables turnover, BJs Wholesale Club Holdings Inc has maintained a relatively stable ratio between 12.21 and 13.80. A higher payables turnover ratio indicates that the company is paying its suppliers in a timely manner, which can improve relationships and potentially secure better terms in the future.

Unfortunately, the data does not provide information on the working capital turnover for BJs Wholesale Club Holdings Inc. This ratio would have helped assess how effectively the company utilizes its working capital to generate sales revenue.

Overall, the activity ratios for BJs Wholesale Club Holdings Inc suggest efficient management of inventory, receivables, and payables, which are vital for maintaining a strong financial position and sustainable operations.

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Average number of days

In analyzing BJs Wholesale Club Holdings Inc's activity ratios over the past five years, we can observe the following trends:

1. Days of Inventory on Hand (DOH):
- There has been a slight fluctuation in the number of days of inventory on hand over the past five years, ranging from a low of 31.68 days to a high of 36.67 days.
- The current ratio of 32.53 days indicates that, on average, the company holds inventory for approximately 32.53 days before selling it.

2. Days of Sales Outstanding (DSO):
- The days of sales outstanding have also varied over the years, with a low of 3.82 days and a high of 5.71 days.
- The current DSO ratio of 4.30 days suggests that it takes the company approximately 4.3 days to collect payments from its customers after making a sale.

3. Number of Days of Payables:
- The number of days of payables has shown some fluctuation, with a range of 26.45 days to 29.89 days.
- The current ratio of 26.45 days highlights that, on average, the company takes approximately 26.45 days to pay its creditors for goods and services received.

Overall, the trends in BJs Wholesale Club Holdings Inc's activity ratios indicate a relatively stable management of inventory, collection of receivables, and payment of payables over the past five years. However, it is important for the company to monitor these ratios regularly to ensure efficient management of its working capital and overall operational efficiency.

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Long-term

BJs Wholesale Club Holdings Inc has shown a decreasing trend in total asset turnover over the past five years, from 2.50 in 2020 to 2.98 in 2024. This indicates that the company is generating less revenue per dollar of assets over time.

On the other hand, the fixed asset turnover ratio has also declined from 17.35 in 2020 to 12.61 in 2024. This suggests that BJs Wholesale Club Holdings Inc is becoming less efficient in generating sales from its fixed assets.

Overall, the decreasing trend in both total asset turnover and fixed asset turnover ratios may indicate inefficiency in asset utilization and a potential need for the company to evaluate its asset management strategies to improve profitability in the long term.