Buckle Inc (BKE)

Short-term

Turnover ratios

Activity ratios provide insight into how effectively a company is managing its assets and liabilities. Let's analyze the activity ratios of Buckle Inc based on the provided data:

1. Inventory Turnover:
- In January 2023, Buckle Inc had an inventory turnover of 8.13, indicating that the company sold and replaced its inventory approximately 8.13 times during the year.
- The inventory turnover decreased to 5.35 in January 2023, and further declined to 5.08 in January 2024 before showing an improvement to 7.84 in February 2024. This suggests that Buckle Inc may have experienced challenges in managing its inventory efficiently in the past but made improvements in the most recent period with a higher turnover rate.
- In January 2025, the inventory turnover was 5.17, showing consistency in inventory management compared to the previous year.

2. Receivables Turnover:
- Buckle Inc had a receivables turnover of 106.36 in January 2023, signifying that the company collected its accounts receivable approximately 106.36 times during the year.
- The data for January 2023 and January 2024 is not available, but in February 2024, the receivables turnover increased significantly to 145.00, indicating a faster collection of receivables.
- The receivables turnover data for January 2025 is not provided, so it is not possible to assess the trend in that period.

3. Payables Turnover:
- Buckle Inc had a payables turnover of 22.68 in January 2023, implying that the company paid its accounts payable approximately 22.68 times during the year.
- The data for January 2023 and January 2024 is not available, but in February 2024, the payables turnover decreased to 21.54. This suggests a slightly slower pace in settling payables during that period.
- The payables turnover data for January 2025 is not provided, so the trend in that period cannot be evaluated.

4. Working Capital Turnover:
- The working capital turnover for Buckle Inc was 6.82 in January 2023, indicating that the company generated revenue approximately 6.82 times based on its working capital.
- This ratio remained constant at 6.82 in January 2023 and decreased to 5.66 in January 2024 and February 2024. The decline may suggest a lower efficiency in generating revenue relative to working capital during those periods.
- In January 2025, the working capital turnover further decreased to 5.41, indicating a continued reduction in revenue generation efficiency compared to working capital.

Overall, the analysis of Buckle Inc's activity ratios reveals fluctuations in inventory turnover, improvements in receivables turnover, and variations in payables turnover and working capital turnover. These ratios provide valuable insights into the company's operational efficiency and liquidity management over the analyzed periods.

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Average number of days

Based on the data provided, let's analyze the activity ratios of Buckle Inc:

1. Days of Inventory on Hand (DOH):
- In January 2023, Buckle Inc had 44.91 days of inventory on hand, indicating that it took approximately 44.91 days to sell its inventory.
- In January 2024, this ratio increased to 71.80 days, suggesting a slowdown in inventory turnover.
- By February 2024, the DOH decreased to 46.56 days, showing an improvement in inventory management.
- In January 2025, the DOH increased to 70.55 days, indicating a longer period required to sell inventory compared to the previous year.

2. Days of Sales Outstanding (DSO):
- In January 2023, Buckle Inc had 3.43 days of sales outstanding, indicating a quick collection of receivables.
- However, there is missing data for DSO in January 2023, 2024, and 2025, limiting a comprehensive analysis of this metric.
- By February 2024, the DSO was 2.52 days, reflecting an efficient collection process.

3. Number of Days of Payables:
- In January 2023, Buckle Inc had 16.09 days of payables outstanding, suggesting the company took approximately 16.09 days to pay its suppliers.
- Similar to DSO, there is missing data for the number of days of payables in January 2023, 2024, and 2025.
- By February 2024, the number of days of payables increased slightly to 16.94 days.

Overall, the data indicates fluctuations in Buckle Inc's activity ratios, with changes in the efficiency of inventory management, collection of receivables, and payment of payables over the years. It would be essential for Buckle Inc to monitor these ratios consistently to ensure optimal management of working capital and efficiency in operations.

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Long-term

Long-term activity ratios provide insights into the efficiency of a company's use of its assets over an extended period. In the case of Buckle Inc, we will analyze its fixed asset turnover and total asset turnover ratios.

1. Fixed Asset Turnover:
- The fixed asset turnover ratio indicates how effectively a company generates sales from its investment in fixed assets.
- In January 28, 2023, Buckle Inc achieved a high fixed asset turnover of 11.97, suggesting that the company efficiently utilized its fixed assets to generate revenue.
- However, this ratio decreased significantly to 3.50 in January 31, 2023, indicating a potential decline in the efficiency of fixed asset utilization during that period.
- The ratio value was not available for January 31, 2024, but it rebounded to 9.79 by February 3, 2024, showing improved utilization of fixed assets.
- As of January 31, 2025, the fixed asset turnover ratio was not provided, making it challenging to assess the company's efficiency in utilizing fixed assets in the most recent period.

2. Total Asset Turnover:
- The total asset turnover ratio measures how effectively a company generates sales from all of its assets.
- Both on January 28, 2023, and January 31, 2023, Buckle Inc maintained a consistent total asset turnover ratio of 1.61, indicating stable efficiency in utilizing its total assets to generate revenue during those periods.
- The ratio declined slightly to 1.42 on January 31, 2024, and remained the same in subsequent periods, suggesting a marginal decrease in the efficiency of total asset utilization.
- By January 31, 2025, the total asset turnover ratio decreased further to 1.33, signaling a potential decrease in the company's ability to generate sales from its total assets in the most recent period.

In conclusion, based on the available data, Buckle Inc's fixed asset turnover ratio has shown variation over the analyzed periods, while the total asset turnover ratio has experienced a slight decline. Further analysis incorporating additional financial metrics and trends would be beneficial to fully assess the long-term activity efficiency of Buckle Inc.