Boot Barn Holdings Inc (BOOT)
Cash conversion cycle
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 228.40 | 217.59 | 234.47 | 212.43 | 207.75 | 191.57 | 198.11 | 194.86 | 205.49 | 213.63 | 238.94 | 205.03 | 189.58 | 166.54 | 171.27 | 159.07 | 168.14 | 159.55 | 171.85 | 172.62 |
| Days of sales outstanding (DSO) | days | 1.96 | 2.02 | 1.64 | 1.69 | 4.43 | 2.22 | 2.00 | 2.57 | 2.89 | 3.35 | 2.54 | 2.18 | 2.37 | 2.11 | 4.08 | 3.47 | 5.22 | 6.15 | 6.02 | 4.84 |
| Number of days of payables | days | 41.10 | 40.75 | 50.50 | 45.38 | 46.08 | 44.77 | 47.29 | 37.23 | 46.80 | 55.54 | 63.79 | 58.18 | 52.52 | 81.72 | 68.71 | 59.43 | 63.80 | 66.86 | 53.35 | 53.26 |
| Cash conversion cycle | days | 189.26 | 178.87 | 185.61 | 168.74 | 166.10 | 149.03 | 152.83 | 160.20 | 161.59 | 161.44 | 177.69 | 149.03 | 139.43 | 86.93 | 106.64 | 103.11 | 109.56 | 98.84 | 124.53 | 124.19 |
March 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 228.40 + 1.96 – 41.10
= 189.26
The cash conversion cycle of Boot Barn Holdings Inc has shown some fluctuations over the past few years. It measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
From June 30, 2020, to December 31, 2021, the company was able to reduce its cash conversion cycle from 124.19 days to 86.93 days, indicating an improvement in efficiency. However, the cycle started to increase again in the following periods, reaching 185.61 days by September 30, 2024.
The increasing trend in the cash conversion cycle could be a sign of potential issues in managing inventory, collecting receivables, or paying suppliers. A longer cycle means the company is tying up more cash in working capital, which could impact liquidity and profitability.
It is important for Boot Barn Holdings Inc to monitor its cash conversion cycle closely and identify areas for improvement to ensure optimal working capital management and sustainable growth.
Peer comparison
Mar 31, 2025