Burlington Stores Inc (BURL)
Cash conversion cycle
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 47.62 | 44.70 | 53.45 | 44.82 | 75.79 |
| Days of sales outstanding (DSO) | days | 3.02 | 2.79 | 2.98 | 2.12 | 3.94 |
| Number of days of payables | days | 39.52 | 39.30 | 43.22 | 47.44 | 88.26 |
| Cash conversion cycle | days | 11.12 | 8.19 | 13.21 | -0.51 | -8.53 |
February 1, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 47.62 + 3.02 – 39.52
= 11.12
The cash conversion cycle of Burlington Stores Inc has shown fluctuations over the years based on the provided data. In January 2021, the company had a negative cash conversion cycle of -8.53 days indicating a favorable position where it could convert its inventory into cash before paying its suppliers. This improved further by January 2022, with a more favorable cycle of -0.51 days. However, in January 2023, there was a significant change as the cycle turned positive to 13.21 days, indicating that Burlington took longer to convert inventory into cash.
By February 2024, the cash conversion cycle improved to 8.19 days, showing a positive trend from the previous year. In February 2025, the cycle increased slightly to 11.12 days, signifying a longer period Burlington takes to convert its inventory into cash compared to the previous year. Overall, while there have been fluctuations in the cash conversion cycle, Burlington Stores Inc had primarily operated with a negative cycle, enabling efficient management of cash flow in relation to inventory and accounts payable.
Peer comparison
Feb 1, 2025