Boot Barn Holdings Inc (BOOT)
Cash conversion cycle
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 228.40 | 207.76 | 205.50 | 189.58 | 168.14 |
| Days of sales outstanding (DSO) | days | 1.96 | 4.43 | 2.89 | 2.37 | 5.22 |
| Number of days of payables | days | 41.10 | 46.08 | 46.80 | 52.52 | 63.80 |
| Cash conversion cycle | days | 189.26 | 166.11 | 161.59 | 139.43 | 109.56 |
March 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 228.40 + 1.96 – 41.10
= 189.26
Boot Barn Holdings Inc's cash conversion cycle has been fluctuating over the past five years. In March 2021, the company had a cash conversion cycle of 109.56 days, indicating that it took the company approximately 109 days to convert its investments in inventory and accounts receivable into cash.
By March 2025, the cash conversion cycle had increased to 189.26 days, signifying a longer period required by the company to complete the cash conversion cycle. This suggests that Boot Barn Holdings Inc may be facing challenges in efficiently managing its inventory and accounts receivable, leading to a slower conversion of these assets into cash.
Overall, the increasing trend in the cash conversion cycle indicates that the company may be experiencing difficulties in optimizing its working capital management processes, potentially impacting its liquidity and cash flow position. Management should assess and address the underlying reasons for the prolonged cash conversion cycle to improve operational efficiency and financial performance.
Peer comparison
Mar 31, 2025