Buckle Inc (BKE)
Cash conversion cycle
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 70.55 | 46.56 | 71.80 | 68.25 | 44.91 |
| Days of sales outstanding (DSO) | days | — | 2.52 | — | — | 3.43 |
| Number of days of payables | days | — | 16.94 | — | — | 16.09 |
| Cash conversion cycle | days | 70.55 | 32.13 | 71.80 | 68.25 | 32.25 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 70.55 + — – —
= 70.55
The cash conversion cycle for Buckle Inc indicates the time it takes for the company to convert its investments in inventory and receivables into cash inflows. Analyzing the data provided, we observe fluctuations in the cash conversion cycle over the years:
- As of January 28, 2023, the cash conversion cycle stood at 32.25 days, suggesting an efficient management of working capital.
- By January 31, 2023, the cycle increased significantly to 68.25 days, indicating a potential delay in the conversion of inventory and receivables into cash.
- The cycle continued to rise to 71.80 days by January 31, 2024, reflecting a prolonged period between capital outflows and inflows.
- However, there was a notable improvement by February 3, 2024, with the cycle decreasing to 32.13 days, signaling a more efficient cash conversion process.
- As of January 31, 2025, the cash conversion cycle increased again to 70.55 days, indicating a potential challenge in managing working capital effectively.
Overall, fluctuations in the cash conversion cycle suggest varying efficiency levels in converting investments into cash over the years, highlighting the need for Buckle Inc to closely monitor and optimize its working capital management practices.
Peer comparison
Jan 31, 2025