Boot Barn Holdings Inc (BOOT)

Liquidity ratios

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
Current ratio 2.33 2.14 2.05 2.02 1.79 1.59 1.48 1.58 1.61 1.45 1.57 1.51 1.69 1.50 1.36 1.25 1.23 1.23 1.14 1.14
Quick ratio 0.31 0.34 0.15 0.09 0.08 0.15 0.06 0.06 0.10 0.32 0.19 0.24 0.39 0.38 0.21 0.32 0.28 0.20 0.07 0.11
Cash ratio 0.24 0.31 0.12 0.05 0.05 0.11 0.04 0.04 0.06 0.30 0.14 0.20 0.33 0.33 0.15 0.28 0.22 0.16 0.04 0.09

Boot Barn Holdings Inc's liquidity ratios indicate its ability to meet its short-term obligations and manage cash efficiently.

The current ratio has shown a general increasing trend over the past few quarters, indicating an improvement in the company's ability to cover its current liabilities with its current assets. The ratio has improved from 1.14 in June 2019 to 2.33 in March 2024, reflecting more than sufficient current assets to meet short-term obligations.

In contrast, the quick ratio has fluctuated significantly, suggesting variability in the company's ability to cover its current liabilities with its most liquid assets. The ratio dropped to as low as 0.06 in both June 2022 and December 2022, indicating a limited ability to meet immediate obligations without relying on inventory. However, the quick ratio improved to 0.34 in December 2023 before decreasing slightly to 0.31 in March 2024.

The cash ratio, representing the most conservative liquidity metric, also experienced fluctuations. Although it improved from 0.04 in December 2019 to 0.31 in December 2023, signifying a better ability to cover short-term liabilities with cash, the ratio declined to 0.24 in March 2024.

Overall, Boot Barn Holdings Inc has shown an increasing trend in its ability to cover short-term obligations with its current assets, but the fluctuating quick and cash ratios indicate potential variability in managing immediate liquidity needs.

Additional liquidity measure

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
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

The cash conversion cycle (CCC) of Boot Barn Holdings Inc has shown variability over the past several quarters. The CCC represents the time it takes for the company to convert its investments in inventory into cash inflows from sales.

Looking at the data, we observe that the CCC has fluctuated significantly, ranging from a low of 65.27 days in March 2022 to a high of 130.83 days in September 2022. Generally, a lower CCC indicates more efficient management of working capital and tighter control over the cash flow cycle.

In the most recent quarter ending March 31, 2024, the CCC stood at 120.23 days, representing a moderate increase compared to the previous quarter's figure of 108.52 days. This suggests that there may have been a slight deterioration in the company's ability to convert inventory into cash efficiently during this period.

It is essential for Boot Barn Holdings Inc to monitor and manage its cash conversion cycle effectively to ensure optimal utilization of working capital and improved liquidity. By analyzing the components of the CCC, including the days inventory outstanding, days sales outstanding, and days payable outstanding, the company can identify areas for improvement and implement strategies to shorten the cash conversion cycle and enhance overall financial performance.