Burlington Stores Inc (BURL)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.15 | 1.13 | 1.17 | 1.16 | 1.19 | 1.12 | 1.20 | 1.26 | 1.31 | 1.33 | 1.48 | 1.58 | 1.49 | 1.51 | 1.54 | 1.65 | 0.97 | 0.88 | 0.90 | 0.93 |
| Quick ratio | 0.49 | 0.36 | 0.37 | 0.36 | 0.49 | 0.27 | 0.33 | 0.41 | 0.59 | 0.61 | 0.79 | 0.93 | 0.86 | 0.82 | 0.92 | 1.11 | 0.34 | 0.16 | 0.15 | 0.15 |
| Cash ratio | 0.46 | 0.32 | 0.32 | 0.31 | 0.46 | 0.23 | 0.28 | 0.36 | 0.56 | 0.57 | 0.75 | 0.89 | 0.82 | 0.77 | 0.88 | 1.10 | 0.28 | 0.09 | 0.07 | 0.08 |
Burlington Stores Inc's liquidity ratios have shown fluctuating trends over the past few quarters. The current ratio, which measures the company's ability to cover short-term obligations with current assets, has ranged from a low of 0.88 to a high of 1.65. The trend indicates some volatility but generally a moderate level of liquidity, with the ratio hovering around 1.15 to 1.65.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has exhibited significant variability, ranging from 0.16 to 1.11. This suggests that the company may face challenges in meeting short-term obligations without relying on inventory in certain periods.
The cash ratio, which indicates the proportion of current liabilities that can be covered by cash and equivalents, has also shown fluctuations, varying between 0.07 and 1.10. This implies that Burlington Stores Inc has maintained a varying level of cash reserves to meet its short-term financial commitments.
Overall, the liquidity ratios of Burlington Stores Inc suggest that while the company has generally been able to meet its short-term obligations, there are periods of increased liquidity risk, particularly evident in the quick and cash ratios. It is important for the company to closely monitor its liquidity position and manage its working capital effectively to ensure financial stability and meet future obligations.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Burlington Stores Inc has fluctuated over the past few reporting periods. The company's cash conversion cycle represents the time it takes to convert its investments in inventory and other resources into cash flows from sales.
In the latest period, as of February 3, 2024, the cash conversion cycle improved significantly to 8.19 days, indicating that the company was able to convert its investments into cash more efficiently compared to previous periods. This improvement may be attributed to better inventory management or quicker collection of receivables.
Conversely, in previous periods such as October 28, 2023 and July 29, 2023, the cash conversion cycle was longer at 20.16 and 20.13 days respectively. This suggests that the company took longer to convert its investments into cash during these periods, which could have been caused by factors like slower inventory turnover or delays in receiving payments from customers.
Notably, there were instances where the cash conversion cycle was negative, such as in January 29, 2022 and October 30, 2021, indicating that Burlington Stores Inc was able to convert its investments into cash before paying its suppliers. A negative cash conversion cycle can be beneficial as it signifies efficient working capital management.
Overall, fluctuations in the cash conversion cycle of Burlington Stores Inc reflect changes in the company's operational efficiency and liquidity management practices. Monitoring this metric provides insights into the company's ability to manage its working capital effectively and generate cash flows from its operating activities.