Buckle Inc (BKE)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	46.56	55.81	49.20	49.77	44.91	55.80	47.82	45.51	38.85	39.82	39.44	39.38	50.31	61.02	60.39	61.87	57.57	65.76	61.28	57.60
Days of sales outstanding (DSO)	days	2.52	2.95	2.70	1.76	3.43	4.43	3.62	1.23	3.41	1.67	2.09	0.56	1.14	0.75	1.06	0.80	1.27	3.85	4.62	2.39
Number of days of payables	days	16.94	23.20	19.62	20.88	16.09	27.11	23.46	23.00	22.81	25.14	28.07	23.73	21.60	29.62	24.96	9.77	12.58	21.20	20.19	17.42
Cash conversion cycle	days	32.13	35.55	32.28	30.65	32.25	33.11	27.98	23.74	19.45	16.34	13.46	16.22	29.85	32.15	36.49	52.90	46.27	48.42	45.71	42.58

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 measures the time it takes for the company to convert its investments in inventory and other resources into cash flow from sales. Looking at the historical data, we can observe fluctuations in the cash conversion cycle over time.

The cash conversion cycle has been relatively stable in recent periods, ranging from around 13 to 35 days. A lower cash conversion cycle indicates that Buckle Inc is managing its working capital efficiently, converting its assets into cash quickly. This could imply effective inventory management and sales collection processes.

It is noteworthy that the cash conversion cycle has shown a decreasing trend over the past few quarters, indicating potential improvements in operational efficiency and financial performance. With a current cash conversion cycle of 32.13 days, Buckle Inc appears to be effective in managing its working capital and converting assets into cash flow.

Overall, the trend of the cash conversion cycle for Buckle Inc suggests that the company is maintaining a healthy balance between managing its inventory, accounts receivable, and accounts payable, leading to effective cash flow generation and operational performance. However, continued monitoring and analysis of this metric will be crucial to ensure sustained efficiency in working capital management.