Burlington Stores Inc (BURL)
Working capital turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 9,727,470 | 8,702,600 | 9,322,260 | 5,763,980 | 7,286,400 |
| Total current assets | US$ in thousands | 2,327,020 | 2,283,790 | 2,547,640 | 2,510,620 | 1,417,370 |
| Total current liabilities | US$ in thousands | 2,028,790 | 1,911,950 | 1,947,650 | 1,684,000 | 1,461,900 |
| Working capital turnover | 32.62 | 23.40 | 15.54 | 6.97 | — |
February 3, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $9,727,470K ÷ ($2,327,020K – $2,028,790K)
= 32.62
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. Higher values indicate better efficiency in using working capital.
Analyzing the historical data of Burlington Stores Inc's working capital turnover, we observe a positive trend over the years. The ratio has shown a significant increase from 6.97 in January 30, 2021, to 15.54 in January 29, 2022, and further to 23.40 in January 28, 2023, reaching 32.62 in February 3, 2024.
This upward trend indicates that Burlington Stores Inc has become more efficient in utilizing its working capital to support its sales growth over the years. The company has been able to generate higher sales revenue relative to its working capital investment, which is a positive sign of improved financial management and operational efficiency.
However, it is important to note that the working capital turnover ratio does not provide a complete picture of the financial health of the company and should be assessed in conjunction with other financial ratios and qualitative aspects of the business.
Peer comparison
Feb 3, 2024