Boot Barn Holdings Inc (BOOT)
Cash conversion cycle
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 148.79 | 138.71 | 144.49 | 142.48 | 150.80 | 156.00 | 175.01 | 150.98 | 140.64 | 124.01 | 127.59 | 118.43 | 124.58 | 117.99 | 127.10 | 127.55 | 136.47 | 139.13 | 171.63 | 158.52 |
| Days of sales outstanding (DSO) | days | 4.43 | 2.22 | 2.00 | 2.57 | 2.90 | 3.35 | 2.55 | 2.18 | 2.91 | 2.11 | 4.08 | 3.47 | 5.22 | 6.15 | 6.02 | 4.84 | 7.45 | 4.83 | 3.29 | 2.99 |
| Number of days of payables | days | 33.00 | 32.42 | 34.49 | 27.22 | 34.34 | 40.55 | 46.73 | 42.84 | 38.96 | 60.85 | 51.19 | 44.25 | 47.28 | 49.44 | 39.46 | 39.36 | 45.06 | 62.05 | 74.64 | 62.10 |
| Cash conversion cycle | days | 120.23 | 108.52 | 112.01 | 117.83 | 119.36 | 118.80 | 130.83 | 110.32 | 104.59 | 65.27 | 80.48 | 77.65 | 82.53 | 74.69 | 93.67 | 93.03 | 98.86 | 81.91 | 100.28 | 99.40 |
March 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 148.79 + 4.43 – 33.00
= 120.23
Boot Barn Holdings Inc's cash conversion cycle for the period from December 31, 2019, to March 31, 2024, has displayed fluctuations but generally shows an increasing trend in days required to convert resources invested in inventory into cash receipts from sales. The cash conversion cycle measures the average number of days it takes a company to convert its inventory investments into cash inflows from sales, considering both the inventory holding period and the accounts receivable collection period, while taking into account the accounts payable payment period.
The cash conversion cycle for Boot Barn Holdings Inc ranged from a low of 65.27 days on March 31, 2022, to a high of 130.83 days on September 30, 2022. Notably, there was a significant increase in the cash conversion cycle in the following quarters from September 2022 to March 31, 2024, peaking at 120.23 days. This increase indicates that the company took longer to convert its inventory investments into cash during these periods.
A longer cash conversion cycle can tie up resources in inventory and accounts receivable, impacting the company's liquidity and potentially requiring additional working capital. Investors and analysts closely monitor the cash conversion cycle as it provides insights into a company's efficiency in managing its working capital and operational processes. It is crucial for management to monitor and potentially optimize the cash conversion cycle to ensure efficient cash flow management and operational performance.
Peer comparison
Mar 31, 2024