Burlington Stores Inc (BURL)

Short-term

Turnover ratios

Burlington Stores Inc's activity ratios provide insight into how efficiently the company manages its assets and operations.

1. Inventory turnover:
- Burlington Stores Inc's inventory turnover ratio has fluctuated over the years, ranging from 4.08 to 8.17.
- A higher inventory turnover ratio indicates that the company is selling its inventory quickly, which is generally positive.
- The company's inventory turnover improved in the most recent period, suggesting effective inventory management.

2. Receivables turnover:
- Burlington Stores Inc's receivables turnover ratio has been volatile, with values ranging from 78.23 to 172.35.
- A higher receivables turnover ratio indicates that the company is collecting its receivables efficiently.
- The receivables turnover ratio increased significantly in some periods, reflecting effective credit management practices.

3. Payables turnover:
- The payables turnover ratio for Burlington Stores Inc has ranged from 3.84 to 10.17.
- A higher payables turnover ratio suggests that the company is paying its suppliers quickly.
- The company's payables turnover ratio has shown some volatility but has generally maintained at a reasonable level.

4. Working capital turnover:
- Burlington Stores Inc's working capital turnover ratio has varied significantly, with values ranging from 6.36 to 129.23.
- A higher working capital turnover ratio indicates that the company is efficiently utilizing its working capital to generate sales.
- The company's working capital turnover ratio has shown a substantial improvement in some periods, indicating enhanced operational efficiency.

Overall, the activity ratios of Burlington Stores Inc reflect varying degrees of efficiency in managing inventory, receivables, payables, and working capital. Analyzing these ratios over time provides valuable insights into the company's operational performance and efficiency.

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Average number of days

Burlington Stores Inc's activity ratios provide insights into the efficiency of its operations.

1. Days of Inventory on Hand (DOH): The company's DOH indicates how quickly it sells through its inventory. Over the period analyzed, the DOH fluctuated, ranging from 44.69 days to 89.51 days. A lower DOH suggests faster inventory turnover and efficient management of stock levels. Burlington Stores Inc's DOH experienced some volatility but generally remained within a reasonable range, indicating effective inventory management.

2. Days of Sales Outstanding (DSO): DSO measures how long it takes the company to collect its accounts receivable. The company's DSO ranged from 0.70 days to 4.67 days during the period examined. A lower DSO is preferable as it signifies faster cash collection. Burlington Stores Inc maintained relatively consistent DSO levels, which indicates timely collection of receivables and efficient credit management practices.

3. Number of Days of Payables: This ratio reflects how quickly the company pays its suppliers. Burlington Stores Inc's payment period ranged from 33.67 days to 95.08 days, showing variability. A longer payment period can indicate favorable terms with suppliers, but it may also suggest a strained cash flow position. The company managed its payables effectively, maintaining a balance between timely payments and optimizing cash flow.

In conclusion, Burlington Stores Inc's activity ratios demonstrate a reasonable efficiency in managing inventory levels, collecting receivables, and handling payables. The company maintained a stable performance in terms of inventory turnover, receivables collection, and payment to suppliers throughout the analyzed period. Overall, the company's operational efficiency appears to be satisfactory based on these activity ratios.

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Long-term

The fixed asset turnover ratio of Burlington Stores Inc has shown a positive trend over the past few years, indicating that the company has become more efficient in generating sales revenue relative to its fixed assets. The ratio started at 4.59 in May 2020 and reached its peak at 6.01 in January 2022 before stabilizing around 5.00 in the following periods. This suggests that Burlington Stores has effectively utilized its fixed assets to drive sales growth.

When looking at the total asset turnover ratio, we see a similar pattern of improvement over time. The ratio increased from 0.97 in May 2020 to 1.31 in April 2022, indicating that the company has been able to generate more sales revenue per dollar of total assets. This trend demonstrates Burlington Stores' ability to efficiently utilize its total assets to drive revenues.

Overall, both the fixed asset turnover and total asset turnover ratios of Burlington Stores Inc demonstrate that the company has been successful in maximizing its asset utilization to drive sales growth and improve operational efficiency.