Buckle Inc (BKE)

Working capital turnover

		Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Revenue (ttm)	US$ in thousands	1,261,102	1,280,525	1,309,409	1,318,957	1,345,187	1,324,311	1,311,402	1,304,546	1,294,607	1,232,512	1,164,085	1,084,990	901,278	853,446	826,562	814,354	900,254	893,663	884,649	881,912
Total current assets	US$ in thousands	444,256	508,939	455,227	433,915	423,336	505,861	435,076	408,211	391,206	598,028	537,543	505,152	437,224	481,552	417,612	339,581	378,830	416,288	391,425	384,598
Total current liabilities	US$ in thousands	221,456	216,164	196,775	206,804	226,043	240,105	216,280	223,713	248,541	239,295	226,103	234,041	206,359	203,283	173,150	138,444	172,641	178,661	166,608	167,063
Working capital turnover		5.66	4.37	5.07	5.81	6.82	4.98	5.99	7.07	9.07	3.44	3.74	4.00	3.90	3.07	3.38	4.05	4.37	3.76	3.93	4.05

February 3, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,261,102K ÷ ($444,256K – $221,456K)
= 5.66

The working capital turnover ratio measures how efficiently a company is able to utilize its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company is able to efficiently use its current assets to support its sales activities.

Looking at the trend in Buckle Inc's working capital turnover over the past few quarters, we can see fluctuations in the ratio. The ratio has varied between 3.07 and 9.07, indicating some level of inconsistency in the company's ability to effectively turn its working capital into sales.

For the most recent ratio of 5.66, this suggests that for every dollar of working capital, Buckle Inc generated $5.66 in sales. This ratio has improved compared to the previous quarter's 4.37, indicating better efficiency in using working capital to drive revenue.

It is important for Buckle Inc to further analyze the factors influencing its working capital turnover to identify areas for improvement in managing its current assets and liabilities effectively. Consistent monitoring of the working capital turnover ratio can help the company evaluate its operational efficiency and make informed decisions to optimize its working capital management.