Buckle Inc (BKE)
Working capital turnover
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,217,690 | 1,261,100 | 1,261,100 | 1,345,190 | 1,345,190 |
| Total current assets | US$ in thousands | 439,209 | 444,256 | 444,256 | 423,336 | 423,336 |
| Total current liabilities | US$ in thousands | 213,932 | 221,456 | 221,456 | 226,043 | 226,043 |
| Working capital turnover | 5.41 | 5.66 | 5.66 | 6.82 | 6.82 |
January 31, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,217,690K ÷ ($439,209K – $213,932K)
= 5.41
The working capital turnover ratio for Buckle Inc reflects the efficiency of the company in utilizing its working capital to generate sales revenue. The trend indicates a slight decline in the ratio from 6.82 in January 2023 and February 2023 to 5.66 in January 2024 and February 2024 before further decreasing to 5.41 in January 2025.
A higher working capital turnover ratio generally signifies a more efficient utilization of working capital to generate sales, indicating that the company is able to effectively manage its short-term assets and liabilities.
The decreasing trend in the working capital turnover ratio over the years may suggest that Buckle Inc is experiencing challenges in efficiently converting its working capital into revenue. It could imply potential issues with managing inventory, collecting receivables, or optimizing the use of short-term assets.
Further analysis of the components of working capital, such as accounts receivable turnover and inventory turnover, would provide more insights into the specific areas where improvements may be needed to enhance the efficiency of Buckle Inc's working capital management.
Peer comparison
Jan 31, 2025