BJs Wholesale Club Holdings Inc (BJ)
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 | 32.91 | 32.53 | 32.53 | 31.68 | 31.68 |
| Days of sales outstanding (DSO) | days | — | 4.30 | — | — | 4.54 |
| Number of days of payables | days | — | 26.45 | — | — | 27.48 |
| Cash conversion cycle | days | 32.91 | 10.38 | 32.53 | 31.68 | 8.74 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 32.91 + — – —
= 32.91
The cash conversion cycle of BJs Wholesale Club Holdings Inc has shown some fluctuations over the years based on the provided data. On January 28, 2023, the company had a relatively efficient cash conversion cycle of 8.74 days, indicating that it was able to efficiently convert its investments in inventory back to cash. However, by January 31, 2023, the cycle had increased significantly to 31.68 days, suggesting a delay in the conversion of inventory to cash.
This trend continued into the following year, with the cash conversion cycle on January 31, 2024, further increasing to 32.53 days, signifying potential challenges in managing working capital effectively. The cycle improved slightly by February 3, 2024, dropping to 10.38 days, possibly due to operational adjustments or changes in business strategies.
However, by January 31, 2025, the cash conversion cycle rose once again to 32.91 days, indicating that BJs Wholesale Club Holdings Inc may be facing difficulties in efficiently managing its inventory and accounts receivable to convert them into cash promptly. Overall, monitoring and potentially improving the cash conversion cycle could help the company enhance its liquidity position and overall financial performance.
Peer comparison
Jan 31, 2025