Chewy Inc (CHWY)

Short-term

Turnover ratios

Inventory turnover ratio is a measure of how efficiently a company manages its inventory. Chewy Inc's inventory turnover has fluctuated over the years, with the highest turnover in January 2024 at 14.50 and the lowest in January 2025 at 10.03. A higher inventory turnover indicates that Chewy is selling its inventory quickly, which is generally seen as positive.

Receivables turnover ratio reflects how many times a company collects its accounts receivable during a period. Chewy has data missing for January 31, 2023, January 31, 2024, and January 31, 2025. However, in January 2023, the company had a receivables turnover of 79.91, suggesting that it collected its receivables nearly 80 times during that year.

Payables turnover ratio measures how efficiently a company pays its suppliers. Chewy's payables turnover data is missing for all years except January 29, 2023, where it had a turnover of 9.12. This indicates that Chewy paid its suppliers about 9 times during that year.

Working capital turnover ratio shows how effectively a company utilizes its working capital to generate sales revenue. However, for Chewy Inc, data is missing for all years, making it difficult to assess how efficiently the company is using its working capital to drive sales.

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Average number of days

Chewy Inc's activity ratios provide insights into the management of its inventory, receivables, and payables.

1. Days of Inventory on Hand (DOH):
- The company's DOH decreased from 33.92 days in January 2023 to 25.16 days in January 2024, suggesting more efficient management of inventory. However, it slightly increased to 32.87 days by January 2024 and further to 36.38 days by January 2025, indicating potential issues with inventory management efficiency.

2. Days of Sales Outstanding (DSO):
- In January 2023, Chewy Inc had a DSO of 4.57 days, which suggests the company collects payments from customers quickly. The data for subsequent years shows no information provided, which could indicate potential data availability or reporting issues.

3. Number of Days of Payables:
- The number of days of payables decreased from 40.04 days in January 2023 to 38.66 days in January 2024. Similar to DSO, no data is provided for the subsequent years, making it challenging to assess the company's management of payables effectively.

In conclusion, Chewy Inc's activity ratios reflect variations in managing its inventory, receivables, and payables. The company demonstrated improvements in inventory turnover but lacked data continuity for receivables and payables, making it difficult to gauge overall efficiency in managing working capital components. Continued monitoring and analysis of these ratios will be crucial for assessing the company's operational effectiveness and financial health.

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Long-term

The fixed asset turnover ratio of Chewy Inc has shown a fluctuating trend over the analyzed periods. In January 2023, the company had a fixed asset turnover ratio of 21.09, indicating that Chewy generated $21.09 in sales for every dollar invested in fixed assets. However, this ratio decreased significantly to 11.19 in January 2023, suggesting a lower efficiency in utilizing fixed assets to generate revenue. Subsequently, in January 2024, the fixed asset turnover ratio improved to 21.38, surpassing the previous high in 2023. Notably, data for January 2024 and January 2025 are not available.

On the other hand, the total asset turnover ratio of Chewy Inc reflects the efficiency with which the company utilizes all its assets to generate revenue. The total asset turnover remained relatively stable over the analyzed periods. In January 2023, the total asset turnover ratio was 4.01, indicating that Chewy generated $4.01 in sales for every dollar invested in total assets. This ratio remained consistent at 3.50 for both January 2024 and January 31, 2024, suggesting a consistent level of asset utilization efficiency during those periods. Similarly, in January 2025, the total asset turnover ratio increased slightly to 3.93, signaling a slight improvement in asset utilization efficiency compared to the previous year.

Overall, while the fixed asset turnover ratio of Chewy has shown more variability, the total asset turnover ratio has demonstrated a more stable performance over the analyzed periods, indicating consistent efficiency in utilizing total assets to generate revenue.