Buckle Inc (BKE)

Short-term

Turnover ratios

Inventory turnover is a measure of how efficiently a company manages its inventory. Buckle Inc's inventory turnover ratio fluctuated over the years, ranging from a high of 8.28 in January 2022 to a low of 4.89 in October 2024. A higher turnover indicates that the company is selling its products quickly, which is generally a positive sign.

Receivables turnover measures how efficiently a company collects outstanding receivables. Buckle Inc's data shows varying results with some periods marked as not available. When available, the turnover ratio ranged from 77.48 in October 2022 to 223.22 in April 2023. Higher receivables turnover ratios are preferable as they suggest faster collection of payments.

Payables turnover reflects how quickly a company pays its suppliers. Buckle Inc's payables turnover showed fluctuations over the years and some data points were not provided. The turnover ratio ranged from 10.84 in October 2022 to 18.79 in February 2024. A higher payables turnover indicates that the company is efficiently managing its payables.

Working capital turnover measures how effectively a company is utilizing its working capital to generate sales. Buckle Inc's turnover ratio varied from 4.00 in October 2023 to 9.82 in January 31, 2022. A higher working capital turnover ratio indicates that the company is efficiently using its working capital to support its operations and generate revenue.

Overall, analyzing these activity ratios for Buckle Inc provides insights into its operational efficiency and effectiveness in managing key aspects of its business such as inventory, receivables, payables, and working capital.

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Average number of days

Based on the provided data for Buckle Inc, we can analyze the activity ratios as follows:

1. Days of Inventory on Hand (DOH):
- The average number of days it takes for Buckle Inc to sell its inventory increased from 44.08 days as of January 31, 2022, to 70.55 days as of January 31, 2025.
- The trend shows an overall increase in the DOH over the years, indicating that inventory turnover has slowed down, which may suggest inefficiencies in managing inventory.

2. Days of Sales Outstanding (DSO):
- The DSO represents how long it takes Buckle Inc to collect payments from its customers.
- The company had data available only for certain periods, with fluctuations in the number of days. DSO was lowest at 1.64 days as of April 29, 2023, and highest at 4.71 days as of October 29, 2022.
- Limited data points make it challenging to discern a clear trend in the DSO for Buckle Inc. However, lower DSO values indicate faster collection of receivables, which is generally favorable for the company.

3. Number of Days of Payables:
- This ratio reflects how long Buckle Inc takes to pay its suppliers.
- The number of days of payables ranged from 18.85 days as of January 28, 2023, to 33.66 days as of October 29, 2022.
- Similar to DSO, the data is incomplete for some periods, making it difficult to identify a consistent trend. Nonetheless, a higher number of days of payables may indicate favorable terms with suppliers but could also signify potential liquidity issues if payables are stretched too far.

In conclusion, an increase in the Days of Inventory on Hand suggests that Buckle Inc may be carrying excess inventory or facing challenges in selling products efficiently. The Days of Sales Outstanding and the Number of Days of Payables data are limited, making it challenging to provide a conclusive analysis. Monitoring these activity ratios consistently can help the company evaluate its operational efficiency and working capital management.

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Long-term

The fixed asset turnover ratio measures how efficiently a company is generating sales from its fixed assets. Based on the provided data for Buckle Inc, the fixed asset turnover ratio fluctuated over the reporting periods, ranging from a low of 3.10 to a high of 12.90.

The trend indicates some variability in the company's ability to generate sales from its fixed assets. Particularly noteworthy is the substantial increase in the ratio from 3.74 in July 31, 2022, to 12.17 in January 28, 2023, followed by another high ratio of 12.22 in April 29, 2023. These values suggest an improvement in the utilization of fixed assets to generate sales during these periods.

However, the ratio declined in the subsequent periods, dropping to a low of 3.10 in July 31, 2023, and fluctuating between 3 and 4 in the following reporting dates. The absence of data for January 31, 2024, and onwards prevents a complete assessment of the trend.

Overall, the fixed asset turnover ratios indicate fluctuations in Buckle Inc's efficiency in generating sales from its fixed assets over the reporting periods, with periods of improvement followed by a decline. This metric could be further analyzed in conjunction with other financial indicators to assess the company's long-term operational efficiency and asset utilization.