BJs Wholesale Club Holdings Inc (BJ)

Short-term

Turnover ratios

Based on the data provided, let's analyze the activity ratios of BJs Wholesale Club Holdings Inc:

1. Inventory Turnover: The company's inventory turnover ratio has been consistent over the past few years, averaging around 11 times per year. This indicates that BJs Wholesale Club Holdings Inc is efficiently managing its inventory and quickly selling its products.

2. Receivables Turnover: The data shows that the receivables turnover ratio was reported only for some periods, reaching a high of 84.80. However, there are missing values for certain fiscal years, which may indicate incomplete information or a different reporting structure. A higher turnover ratio generally suggests that the company is efficient in collecting its receivables.

3. Payables Turnover: Similar to receivables turnover, the payables turnover data is available for limited periods, with a reported turnover ratio of around 13 to 14. A higher payables turnover ratio typically indicates that the company is managing its payables effectively and paying its suppliers in a timely manner.

4. Working Capital Turnover: Unfortunately, there is no data available for the working capital turnover ratio for any of the reporting periods. The absence of this ratio makes it challenging to evaluate how effectively the company is utilizing its working capital to generate sales.

In conclusion, while the inventory turnover ratios show efficiency in managing inventory, the absence of data for certain periods, particularly for working capital turnover, limits a comprehensive analysis of BJs Wholesale Club Holdings Inc's overall activity ratios. It is essential for the company to consistently report these ratios to provide a more complete picture of its operational efficiency.

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Average number of days

Based on the provided data, we can analyze BJs Wholesale Club Holdings Inc's activity ratios as follows:

1. Days of Inventory on Hand (DOH)
- The DOH for BJs Wholesale Club Holdings Inc shows a consistent trend over the years, ranging from approximately 31.68 days to 32.91 days. This indicates that the company is able to efficiently manage its inventory levels, with the ability to sell its products within a relatively stable timeframe.

2. Days of Sales Outstanding (DSO)
- The DSO data provided shows variability, with values ranging from 4.30 days to 4.54 days over the years. The lower the DSO, the better, as it signifies that the company is collecting its accounts receivable quickly. However, the presence of some missing data points indicates that further analysis may be needed to fully understand the collection efficiency.

3. Number of Days of Payables
- BJs Wholesale Club Holdings Inc's number of days of payables also seems relatively stable, with values ranging from approximately 26.45 days to 27.48 days. A higher number of days of payables suggests that the company takes longer to pay its suppliers, potentially indicating favorable terms or cash flow management strategies.

In conclusion, BJs Wholesale Club Holdings Inc appears to have effective inventory management practices, satisfactory accounts receivable collection efficiency, and reasonable payment terms with its suppliers based on the activity ratios analyzed. Further analysis and comparison with industry benchmarks could provide additional insights into the company's operational efficiency and performance.

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Long-term

The fixed asset turnover ratio measures how efficiently a company is generating revenue from its fixed assets. Looking at the data provided for BJs Wholesale Club Holdings Inc, we can see fluctuations in the fixed asset turnover ratio over the years.

- In January 28, 2023, the fixed asset turnover ratio was 14.42, indicating that BJs Wholesale Club Holdings Inc generated $14.42 in sales for every dollar invested in fixed assets.
- By January 31, 2023, this ratio decreased to 5.55, suggesting a decline in the efficiency of generating revenue from fixed assets.
- The data is missing for January 31, 2024, but by February 3, 2024, the fixed asset turnover ratio improved significantly to 12.61, indicating a positive trend in utilizing fixed assets to generate revenue.
- Unfortunately, data for January 31, 2025 is also missing, making it challenging to assess the latest performance in terms of fixed asset turnover.

In contrast, the total asset turnover ratio measures the efficiency of a company in generating sales from all its assets, both fixed and current. For BJs Wholesale Club Holdings Inc:

- Both on January 28, 2023, and January 31, 2023, the total asset turnover ratio was constant at 3.04, indicating that the company generated $3.04 in sales for every dollar of total assets invested.
- A slight decrease in the total asset turnover ratio was observed from January 31, 2023, to January 31, 2024, where it stood at 2.99. This decrease suggests a lower efficiency in generating sales from total assets.
- Further, by February 3, 2024, the total asset turnover ratio decreased to 2.98, showing a continued decline in the efficiency of generating revenue from total assets.
- Lastly, by January 31, 2025, the total asset turnover ratio declined further to 2.90, indicating a challenging environment in generating sales from total assets.

In conclusion, the analysis of BJs Wholesale Club Holdings Inc's long-term activity ratios reveals fluctuations in both fixed asset turnover and total asset turnover ratios over the years, suggesting varying levels of efficiency in utilizing assets to generate sales.