Burlington Stores Inc (BURL)

Short-term

Turnover ratios

Burlington Stores Inc's activity ratios provide insight into how efficiently the company is managing its assets and liabilities to generate sales.

1. Inventory Turnover:
- The inventory turnover ratio indicates the number of times inventory is sold and replaced within a specific period.
- Burlington's inventory turnover has shown an increasing trend from 4.82 in January 30, 2021, to 7.67 in February 1, 2025.
- A higher inventory turnover reflects improved efficiency in managing inventory levels and converting stock into sales.

2. Receivables Turnover:
- The receivables turnover ratio measures how quickly the company collects cash from credit sales.
- Burlington's receivables turnover has fluctuated but generally increased from 92.73 in January 30, 2021, to 120.74 in February 1, 2025.
- A higher receivables turnover indicates a faster collection of accounts receivable, which improves cash flow and liquidity.

3. Payables Turnover:
- The payables turnover ratio shows how efficiently the company pays its suppliers.
- Burlington's payables turnover has been consistently increasing from 4.14 in January 30, 2021, to 9.24 in February 1, 2025.
- A higher payables turnover implies a shorter period for paying suppliers, which can help improve vendor relationships and potentially negotiate better terms.

4. Working Capital Turnover:
- The working capital turnover ratio evaluates how effectively the company utilizes its working capital to generate revenue.
- Burlington's working capital turnover has exhibited a rising trend from 6.97 in January 30, 2021, to 29.85 in February 1, 2025.
- A higher working capital turnover signifies efficient utilization of resources to drive sales growth and indicates effective working capital management.

Overall, the improving trends in Burlington Stores Inc's activity ratios suggest enhanced operational efficiency and effective management of assets and liabilities to support revenue generation and business growth.

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Average number of days

Burlington Stores Inc's activity ratios, including Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables, provide insights into the efficiency of the company's inventory management, accounts receivable collection, and accounts payable management, respectively.

1. Days of Inventory on Hand (DOH):
- In January 30, 2021, Burlington Stores had 75.79 days of inventory on hand, indicating the average number of days the company held inventory before selling it.
- By February 1, 2025, the DOH decreased to 47.62 days, showing an improvement in inventory management efficiency and potentially faster inventory turnover.

2. Days of Sales Outstanding (DSO):
- The company had 3.94 days of sales outstanding as of January 30, 2021, representing the average number of days it took Burlington Stores to collect its accounts receivable.
- The DSO decreased to 3.02 days by February 1, 2025, suggesting a quicker collection of receivables and improved cash flow management.

3. Number of Days of Payables:
- Burlington Stores had 88.26 days of payables outstanding as of January 30, 2021, indicating the average number of days the company took to pay its suppliers.
- By February 1, 2025, the number of days of payables reduced to 39.52 days, indicating more timely payments to suppliers.

Overall, the decreasing trends in DOH and DSO, along with a reduction in the number of days of payables, suggest that Burlington Stores Inc has enhanced its operational efficiency in managing inventory, accounts receivable, and accounts payable over the analyzed period.

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Long-term

Burlington Stores Inc's long-term activity ratios provide insights into the efficiency of the company in utilizing its assets over the years.

1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how efficiently a company generates sales from its investment in fixed assets.
- Burlington Stores Inc's fixed asset turnover has shown a fluctuating trend from 4.01 in January 30, 2021, to a peak of 6.01 in January 29, 2022, before slightly decreasing to 5.22 in January 28, 2023, and further to 5.17 in February 3, 2024, and then to 4.49 in February 1, 2025.
- A higher fixed asset turnover indicates that the company is generating more revenue per dollar invested in fixed assets.
- The decreasing trend from 2023 to 2025 may indicate potential inefficiencies in utilizing fixed assets to generate sales.

2. Total Asset Turnover:
- The total asset turnover ratio measures a company's ability to generate sales from its total assets.
- Burlington Stores Inc's total asset turnover has shown an increasing trend from 0.85 in January 30, 2021, to 1.31 in January 29, 2022, before stabilizing around 1.20 to 1.26 from 2023 to 2024, and slightly decreasing to 1.21 in February 1, 2025.
- An increasing total asset turnover indicates that the company is becoming more efficient in generating sales from its total asset base.
- The slight decrease in 2025 suggests a potential slowdown in the efficiency of utilizing total assets to generate sales, which may warrant further investigation.

In conclusion, the analysis of Burlington Stores Inc's long-term activity ratios suggests that the company has shown generally efficient utilization of fixed assets, although there was a recent decline in fixed asset turnover. Additionally, the total asset turnover indicates improved efficiency, although there was a slight decrease in the most recent year, implying a need for monitoring to maintain efficiency levels.