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 assets and operations.

1. Inventory Turnover: The inventory turnover ratio measures how many times a company sells and replaces its inventory during a specific period. Boot Barn's inventory turnover ratio has been relatively stable over the years, ranging from around 1.5 to 2.5 times annually. A decreasing trend in the most recent periods may indicate potential issues with inventory management or sales.

2. Receivables Turnover: The receivables turnover ratio reflects how efficiently a company collects outstanding payments from its customers. Boot Barn's receivables turnover has shown fluctuations, with significant increases followed by decreases over the years. The high turnover in some periods suggests effective credit and collection policies.

3. Payables Turnover: The payables turnover ratio evaluates how quickly a company pays its suppliers. Boot Barn's payables turnover has fluctuated but generally decreased over time. A declining trend in payables turnover might signal a longer payment period to suppliers, potentially affecting cash flow management.

4. Working Capital Turnover: The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales. Boot Barn's working capital turnover has gradually decreased, indicating a decline in sales generated relative to its working capital. A decreasing trend may raise concerns about the company's operational efficiency and capital utilization.

Overall, while understanding the dynamics of these activity ratios, it is essential for Boot Barn to continually monitor and adjust its operational strategies to improve efficiency and maintain financial health.

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Average number of days

Boot Barn Holdings Inc's activity ratios provide insights into how efficiently the company manages its inventory, collects receivables, and pays its suppliers.

1. Days of Inventory on Hand (DOH): Boot Barn's DOH has shown fluctuations over the past few years, ranging from 159.07 days to 238.94 days. A higher DOH indicates that the company takes longer to sell its inventory, which may lead to higher carrying costs and potentially obsolete inventory. The recent trend shows a slight increase, reaching 228.40 days as of March 31, 2025, which warrants further investigation into inventory management practices.

2. Days of Sales Outstanding (DSO): Boot Barn's DSO measures how quickly the company collects its accounts receivable. The trend in DSO has been relatively stable, with fluctuations between 1.64 days to 6.15 days. Lower DSO values imply faster collections, indicating effective credit and collection policies. Notably, the DSO decreased to 1.96 days as of March 31, 2025, suggesting efficient receivables management.

3. Number of Days of Payables: Boot Barn's payables days show how long the company takes to pay its suppliers. The trend indicates a declining pattern, with days of payables decreasing from 81.72 days to 41.10 days. A lower number of days of payables may imply improved supplier relationships or negotiation power. The decreasing trend may also signal potential cash flow management strategies or operational efficiencies.

Overall, Boot Barn's activity ratios reflect varying levels of efficiency in managing inventory, collecting receivables, and paying suppliers. Analyzing these ratios can help stakeholders evaluate the company's operational performance and identify areas for improvement in working capital management.

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Long-term

Boot Barn Holdings Inc's long-term activity ratios indicate varying levels of efficiency in utilizing its assets over time.

1. Fixed Asset Turnover: This ratio measures how efficiently the company generates revenue from its fixed assets. Boot Barn's fixed asset turnover ratio has shown some fluctuations but generally remained within a moderate range. There was a significant increase from March 31, 2022, to June 30, 2022, followed by a slight dip and then more stability. However, from September 30, 2023, onwards, the ratio notably declined, indicating a potential decrease in the efficiency of utilizing fixed assets to generate sales. Further monitoring of this trend is recommended to assess the impact on the company's operations.

2. Total Asset Turnover: This ratio reflects the company's ability to generate sales from all its assets. Boot Barn's total asset turnover ratio demonstrated a rising trend from June 30, 2021, to March 31, 2022, indicating improved efficiency in asset utilization during this period. However, the ratio slightly fluctuated around the 1.0 mark from September 30, 2022, to March 31, 2025. The slight fluctuations suggest stability in the company's ability to generate revenue relative to its total asset base. It is important for Boot Barn to continue monitoring this ratio to ensure ongoing operational efficiency and effective utilization of its assets for revenue generation.

In conclusion, while the fixed asset turnover ratio exhibited more variation, the total asset turnover ratio remained relatively stable with minor fluctuations. Both ratios provide insight into the company's operational efficiency and the effectiveness of asset management strategies. Monitoring these ratios can help management identify areas for improvement and drive better utilization of resources to support long-term growth and profitability.