BJs Wholesale Club Holdings Inc (BJ)

Short-term

Turnover ratios

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

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently the company is managing its inventory.
- BJs Wholesale Club Holdings Inc's inventory turnover has fluctuated over the observed periods, ranging from 9.63 to 11.67.
- A higher inventory turnover indicates that the company is selling goods quickly, which is generally positive for profitability.

2. Receivables Turnover:
- The receivables turnover ratio reflects how many times a company collects its accounts receivable during a period.
- BJs Wholesale Club Holdings Inc has missing data for most periods, indicating limited information about its effectiveness in collecting receivables.
- Further data availability is needed to assess the efficiency of the company in managing its accounts receivable.

3. Payables Turnover:
- The payables turnover ratio shows how efficiently a company is managing its accounts payable and settling its short-term obligations.
- BJs Wholesale Club Holdings Inc's payables turnover figures are relatively consistent, with values varying between 11.81 and 14.23.
- A higher payables turnover indicates that the company is paying its suppliers quickly, which could signal good relationships with vendors.

4. Working Capital Turnover:
- The working capital turnover ratio measures how effectively a company is utilizing its working capital to generate sales.
- Based on the provided data, there are no values reported for this ratio, indicating a lack of information on how efficiently BJs Wholesale Club Holdings Inc is utilizing its working capital.
- More data is required to evaluate the company's operational efficiency from a working capital perspective.

In conclusion, the analysis of BJs Wholesale Club Holdings Inc's activity ratios indicates varying levels of efficiency in managing inventory and accounts payable. However, there are data limitations regarding receivables turnover and working capital turnover, which hinder a comprehensive assessment of the company's overall activity efficiency.

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Average number of days

The activity ratios of BJs Wholesale Club Holdings Inc provide insights into how efficiently the company manages its inventory, collects its receivables, and pays its suppliers.

1. Days of Inventory on Hand (DOH):
- The DOH for BJs Wholesale Club Holdings Inc ranged from 31.28 days on January 28, 2023, to 37.91 days on October 28, 2023.
- A lower DOH indicates that the company is selling its inventory quickly, while a higher DOH may suggest overstocking or slow-moving inventory.
- Overall, BJs maintained an average DOH of around 33-35 days, suggesting a relatively efficient inventory management process.

2. Days of Sales Outstanding (DSO):
- BJs reported DSO figures intermittently, ranging from 3.78 days on July 29, 2023, to 4.72 days on October 29, 2022.
- DSO measures how long it takes for the company to collect its receivables. Lower DSO values are generally favorable as they indicate faster cash inflows.
- The intermittent data points make it challenging to analyze a trend in receivables collection efficiency over time for BJs Wholesale Club Holdings Inc.

3. Number of Days of Payables:
- BJs maintained stable payables management practices, with days of payables ranging from 25.66 days on February 3, 2024, to 30.91 days on October 29, 2022.
- A lower number of days of payables suggests that the company pays its suppliers more quickly, while a higher number may indicate that BJs takes longer to settle its payables.
- The company's consistent payables management over time indicates a standard approach to supplier payment terms.

In conclusion, BJs Wholesale Club Holdings Inc demonstrates efficient inventory management practices with relatively stable payables management. The sporadic reporting of DSO makes it challenging to gauge the company's effectiveness in collecting receivables consistently over the evaluated periods.

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Long-term

The Fixed Asset Turnover ratio measures how efficiently a company utilizes its fixed assets to generate sales. For BJs Wholesale Club Holdings Inc, we observe fluctuations in this ratio over the reporting periods. The ratio ranged from 5.39 to 15.04, indicating variability in the company's ability to generate revenue from its fixed assets.

The company experienced a significant increase in fixed asset turnover in the third quarter of FY 2022, reaching 14.83, but this level could not be sustained, as the ratio fluctuated in subsequent periods. The ratio fell to 5.39 by the third quarter of FY 2023 before showing a slight improvement.

On the other hand, the Total Asset Turnover ratio, which measures how effectively a company utilizes all its assets to generate revenue, remained relatively stable for BJs Wholesale Club Holdings Inc. This ratio fluctuated between 2.84 and 3.08, with a general trend towards consistency.

Overall, while the company's fixed asset turnover ratio showcased some volatility, its total asset turnover ratio remained relatively steady. This indicates that BJs Wholesale Club Holdings Inc may need to focus on optimizing the utilization of its fixed assets to improve long-term operational efficiency and profitability.