Buckle Inc (BKE)

Short-term

Turnover ratios

Based on the activity ratios for Buckle Inc over the past five years, we can draw several insights:

1. Inventory turnover: This ratio indicates how efficiently the company is managing its inventory. Buckle Inc's inventory turnover has been fluctuating over the years but generally remained at a moderate level, ranging from 6.34 to 9.39. A higher turnover ratio suggests that the company is able to sell its inventory quickly, which is generally favorable.

2. Receivables turnover: This ratio measures how effectively the company is collecting its accounts receivable. Buckle Inc's receivables turnover has shown significant variations over the last five years, ranging from 106.36 to 319.26. A higher turnover ratio indicates that the company is efficient in collecting payments from its customers.

3. Payables turnover: This ratio reflects how quickly the company is paying its suppliers. Buckle Inc's payables turnover has also fluctuated over the years, ranging from 16.00 to 29.02. A higher turnover ratio suggests that the company is managing its payables effectively by paying suppliers promptly.

4. Working capital turnover: This ratio evaluates how efficiently the company is utilizing its working capital to generate sales. Buckle Inc's working capital turnover has ranged from 3.90 to 9.07 over the past five years. A higher turnover ratio indicates that the company is effectively utilizing its working capital to generate revenue.

Overall, Buckle Inc's activity ratios indicate a mix of efficiency levels in managing its inventory, receivables, payables, and working capital. The company has shown fluctuations in these ratios over the years, which may warrant further analysis to identify areas of strength and improvement in its operational efficiency.

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Average number of days

Days of Inventory on Hand (DOH) for Buckle Inc have been relatively stable over the past five years, ranging from a low of 38.85 days in January 2022 to a high of 57.57 days in February 2020. This indicates that the company has been able to manage its inventory efficiently and effectively, keeping it at an optimal level to meet demand without excessive holding costs.

Days of Sales Outstanding (DSO) show a fluctuating trend for Buckle Inc, with the number of days it takes to collect revenue ranging from a low of 1.14 days in January 2021 to a high of 3.43 days in January 2023. A lower DSO is generally preferable as it indicates faster collection of receivables, but the company seems to have some variability in its collections process over the years.

The Number of Days of Payables for Buckle Inc has also exhibited some variability, with the number of days it takes the company to pay its suppliers ranging from a low of 12.58 days in February 2020 to a high of 22.81 days in January 2022. A longer period of payables indicates that the company is taking longer to pay its bills, which can be seen as a positive from a cash management perspective.

Overall, Buckle Inc's activity ratios suggest that the company has generally been adept at managing its inventory efficiently, collecting revenue in a timely manner, and strategically managing its payables to optimize cash flow.

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Long-term

The fixed asset turnover ratio for Buckle Inc has fluctuated over the past five years, ranging from 7.91 in 2020 to 12.88 in 2022. This ratio indicates that the company generated $9.79 in net revenue for every dollar of fixed assets in 2024. The decreasing trend in fixed asset turnover suggests that the efficiency of utilizing fixed assets to generate sales has declined over the years.

On the other hand, the total asset turnover ratio has also varied notably, with the lowest value of 1.04 in 2020 and the highest value of 1.66 in 2022. This ratio reflects Buckle Inc's ability to generate sales in relation to its total assets, showing that in 2024, the company generated $1.42 in net revenue for every dollar of total assets. The improvement in the total asset turnover ratio indicates that the company has been more effective in utilizing its total assets to generate sales.

Overall, the analysis of Buckle Inc's long-term activity ratios suggests that while there have been fluctuations in both fixed asset turnover and total asset turnover ratios, the company has shown improvement in its efficiency of utilizing total assets to generate sales over the years.