Burlington Stores Inc (BURL)
Cash conversion cycle
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 44.69 | 56.59 | 50.56 | 54.53 | 53.45 | 66.16 | 56.76 | 55.77 | 44.82 | 52.87 | 49.35 | 59.73 | 75.79 | 89.51 | 60.81 | 56.10 | 66.69 | 88.66 | 74.17 | 82.54 |
| Days of sales outstanding (DSO) | days | 2.79 | 3.58 | 3.24 | 3.21 | 2.98 | 3.44 | 2.93 | 3.13 | 2.12 | 3.68 | 3.44 | 4.25 | 3.94 | 4.67 | 3.16 | 0.70 | 4.58 | 6.06 | 5.17 | 5.36 |
| Number of days of payables | days | 39.29 | 40.01 | 33.67 | 36.73 | 43.22 | 43.66 | 35.88 | 42.69 | 47.44 | 58.58 | 58.40 | 70.57 | 88.26 | 95.08 | 49.28 | 62.91 | 65.13 | 78.42 | 62.18 | 65.20 |
| Cash conversion cycle | days | 8.19 | 20.16 | 20.13 | 21.02 | 13.21 | 25.93 | 23.81 | 16.21 | -0.51 | -2.03 | -5.61 | -6.59 | -8.53 | -0.91 | 14.69 | -6.11 | 6.14 | 16.30 | 17.16 | 22.69 |
February 3, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 44.69 + 2.79 – 39.29
= 8.19
The cash conversion cycle of Burlington Stores Inc has shown fluctuations over the provided periods. It indicates the time taken by the company to convert its investments in inventory into cash receipts from customers.
From Feb 3, 2024 to May 2, 2019, the cash conversion cycle varied between -8.53 days to 25.93 days. A negative cash conversion cycle implies that the company is collecting cash from customers before paying its suppliers, which can be beneficial for working capital management. However, positive values indicate that the company takes longer to convert its investments into cash.
The company experienced its shortest cash conversion cycle of -8.53 days on Jan 30, 2021, indicating efficient management of inventory and timely collection of receivables. Conversely, the longest cycle of 25.93 days on Oct 29, 2022, suggests a delay in converting inventory to sales and subsequently into cash.
Overall, monitoring the cash conversion cycle is crucial for evaluating the company's operational efficiency, liquidity, and working capital management strategies. Maixmizing efficiency in this cycle can help the company optimize its cash flows and overall financial performance.
Peer comparison
Feb 3, 2024