Boot Barn Holdings Inc (BOOT)

Short-term

Turnover ratios

Boot Barn Holdings Inc's activity ratios provide insights into how efficiently the company manages its inventory, receivables, payables, and working capital.

1. Inventory Turnover: The trend in inventory turnover shows a gradual decline from 2.17 in March 2021 to 1.60 in March 2025. This indicates that the company takes longer to sell its inventory as time progresses. A decreasing ratio may suggest overstocking, slow sales, or outdated inventory management practices.

2. Receivables Turnover: Boot Barn's receivables turnover ratio has fluctuated over the years, peaking at 186.21 in March 2025. A high receivables turnover ratio implies that the company efficiently collects on credit sales. The significant increase in 2025 reflects a faster collection of receivables compared to previous years.

3. Payables Turnover: The payables turnover ratio has shown a consistent increase from 5.72 in March 2021 to 8.88 in March 2025. A higher payables turnover ratio suggests that the company is paying its suppliers more quickly. This may indicate strong supplier relations or efficient cash management.

4. Working Capital Turnover: The working capital turnover ratio has declined over the years, indicating a decreasing efficiency in generating sales revenue relative to the working capital invested. A lower ratio may signify that the company is utilizing its working capital less effectively to generate revenue.

Overall, analyzing these activity ratios provides valuable insights into Boot Barn Holdings Inc's operational efficiency and helps identify areas that may require improvement in inventory management, receivables collection, payables management, and working capital utilization.

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Average number of days

Boot Barn Holdings Inc's activity ratios indicate how efficiently the company manages its working capital.

1. Days of Inventory on Hand (DOH):
- The company's DOH has been increasing over the years, from 168.14 days as of March 31, 2021, to 228.40 days as of March 31, 2025.
- This trend suggests that Boot Barn is holding inventory for longer periods before selling it, which may tie up capital and increase storage costs.

2. Days of Sales Outstanding (DSO):
- Boot Barn's DSO has fluctuated over the years, decreasing from 5.22 days as of March 31, 2021, to 1.96 days as of March 31, 2025.
- The decreasing DSO indicates that the company is collecting receivables more quickly, improving cash flow efficiency.

3. Number of Days of Payables:
- The number of days of payables has declined steadily from 63.80 days as of March 31, 2021, to 41.10 days as of March 31, 2025.
- The decreasing trend suggests that Boot Barn is taking longer to pay its suppliers, potentially indicating improved cash management but could also strain supplier relationships if not managed carefully.

Overall, the company should monitor its inventory management to optimize working capital and balance the collection of receivables with the payment to suppliers to maintain healthy liquidity and efficient operations.

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Long-term

The fixed asset turnover ratio for Boot Barn Holdings Inc has shown fluctuations over the years, reflecting efficiency in utilizing fixed assets to generate sales. The ratio increased from 8.09 in 2021 to 9.59 in 2022, indicating an improvement in the company's ability to generate revenue from its fixed assets. However, there was a decline in the fixed asset turnover ratio to 6.45 in 2023, suggesting a decrease in the efficiency of utilizing fixed assets to generate sales.

It is worth noting that the data for 2024 and 2025 is unavailable (denoted as "—"), which limits a comprehensive analysis of the trend for those years.

In contrast, the total asset turnover ratio for Boot Barn Holdings Inc has also exhibited variability during the period under review. The ratio increased from 0.96 in 2021 to 1.24 in 2022, indicating an enhancement in the company's ability to generate sales in relation to its total assets. However, the total asset turnover ratio decreased to 1.09 in 2023, and further declined to 0.98 in 2024, suggesting a potential decrease in the efficiency of utilizing total assets to generate revenue.

Overall, the trends in the fixed asset turnover and total asset turnover ratios for Boot Barn Holdings Inc suggest varying levels of efficiency in asset utilization over the years, highlighting the importance of closely monitoring these ratios to assess operational performance and resource management.