Buckle Inc (BKE)

Cash conversion cycle

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Days of inventory on hand (DOH)	days	46.56	44.91	38.85	50.31	57.57
Days of sales outstanding (DSO)	days	2.52	3.43	3.41	1.14	1.27
Number of days of payables	days	16.94	16.09	22.81	21.60	12.58
Cash conversion cycle	days	32.13	32.25	19.45	29.85	46.27

February 3, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 46.56 + 2.52 – 16.94
= 32.13

The cash conversion cycle of Buckle Inc has shown variations over the past five years. In the most recent fiscal year ending February 3, 2024, the company's cash conversion cycle was 32.13 days, indicating that it took approximately 32 days for the company to convert its investments in inventory into cash inflows from sales.

Comparing this to the previous years, there was a slight improvement in the efficiency of the cash conversion cycle compared to the prior year when it was 32.25 days. However, it was higher than the cycle observed in the fiscal year ended January 29, 2022, when the company had a relatively shorter cycle of 19.45 days, suggesting improved liquidity management.

Looking further back, in the fiscal year ended January 30, 2021, the company's cash conversion cycle was 29.85 days, indicating a slight increase compared to the previous year. The cycle was longer in the fiscal year ended February 1, 2020, when it reached 46.27 days, signifying a longer period required for Buckle Inc to convert its investments in inventory into cash.

Overall, Buckle Inc's cash conversion cycle has experienced fluctuations over the five-year period, with the company showing some improvements in managing its working capital efficiency in recent years. It is important for the company to continue monitoring and optimizing its cash conversion cycle to ensure effective management of its working capital and maintain financial health.