Boot Barn Holdings Inc (BOOT)
Cash conversion cycle
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 148.79 | 150.80 | 140.64 | 124.58 | 136.46 |
| Days of sales outstanding (DSO) | days | 4.43 | 2.90 | 2.91 | 5.22 | 7.45 |
| Number of days of payables | days | 33.00 | 34.34 | 38.96 | 47.27 | 45.06 |
| Cash conversion cycle | days | 120.22 | 119.36 | 104.59 | 82.52 | 98.85 |
March 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 148.79 + 4.43 – 33.00
= 120.22
The cash conversion cycle of Boot Barn Holdings Inc has fluctuated over the past five years. In the most recent fiscal year ending March 31, 2024, the company's cash conversion cycle increased to 120.22 days, indicating a longer period between when the company pays its suppliers for inventory and when it receives cash from the sale of that inventory. This may suggest inefficiencies in the company's inventory management or collection processes.
Compared to the previous year, there was a slight increase in the cash conversion cycle from 119.36 days in fiscal year 2023. However, looking back two years to fiscal year 2022, there was a significant increase in the cash conversion cycle to 104.59 days, which may have been influenced by changes in the company's operating cycle or working capital management.
The cash conversion cycle in fiscal year 2021 was relatively lower at 82.52 days, indicating a more efficient conversion of inventory into sales and subsequent cash receipts. It is worth noting that there was a notable increase in the cash conversion cycle from fiscal year 2020 to fiscal year 2021, where it stood at 98.85 days.
Overall, the trend in Boot Barn Holdings Inc's cash conversion cycle shows variability, with fluctuations in the efficiency of the company's cash management and working capital practices over the past five years. Further analysis may be required to determine the specific factors driving these changes and to evaluate the company's overall liquidity and operational efficiency.
Peer comparison
Mar 31, 2024