Chewy Inc (CHWY)

Short-term

Turnover ratios

Chewy Inc's inventory turnover ratio, which measures how efficiently the company is managing its inventory, has shown a fluctuating trend over the periods provided. The ratio ranged from a low of 10.67 to a high of 13.55, with the most recent figure standing at 10.79 as of January 31, 2025. Overall, the company appears to be effectively turning over its inventory.

On the other hand, Chewy Inc's receivables turnover, which reflects how quickly the company collects payments from its customers, has been inconsistent and in some periods, data was not available. Despite the gaps in information, the receivables turnover ratio ranged from 57.01 to 80.73, indicating a varying collection efficiency over the periods reported.

The payables turnover ratio, representing how quickly the company pays its suppliers, has also shown fluctuating numbers and data gaps in certain periods. The payables turnover ranged from 7.62 to 8.50, showcasing varying payment practices throughout the reported periods.

Chewy Inc's working capital turnover ratio was not available for the majority of the periods provided, indicating a lack of data to assess how efficiently the company is utilizing its working capital. However, in the two periods where data was available, the working capital turnover stood at 86.95 and 88.02, suggesting a potentially efficient utilization of working capital during those specific times.

In conclusion, Chewy Inc's activity ratios reflect varying levels of efficiency in managing its inventory, receivables, payables, and working capital over the reported periods. The company should continue to monitor and optimize these ratios to enhance its overall financial performance and operational efficiency.

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Average number of days

Days of Inventory on Hand (DOH): Chewy Inc's inventory turnover has been relatively stable over the periods analyzed, ranging from around 26 to 34 days. This indicates that Chewy's inventory is moving through the company's operations at a consistent pace.

Days of Sales Outstanding (DSO): The days of sales outstanding for Chewy Inc show that the company is collecting its accounts receivable within a short period, ranging from 4 to 6 days. This suggests that Chewy has efficient credit and collection policies in place.

Number of Days of Payables: Chewy Inc's number of days of payables has been consistent, indicating stable payment policies with suppliers. The company takes around 42 to 47 days to pay its bills, which falls within industry norms.

Overall, Chewy Inc's activity ratios reflect efficient management of inventory, receivables, and payables, which are crucial for maintaining healthy cash flow and operational efficiency.

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Long-term

Chewy Inc's Fixed Asset Turnover ratio provides insight into how efficiently the company generates sales revenue from its fixed assets. From the data provided, the Fixed Asset Turnover ratio fluctuates over the periods, ranging from a high of 23.85 to a low of 10.96.

A high Fixed Asset Turnover ratio indicates that Chewy is effectively utilizing its fixed assets to generate sales. However, fluctuations in this ratio might suggest changes in the company's operational efficiency or asset utilization strategies over time.

On the other hand, Chewy Inc's Total Asset Turnover ratio reflects the company's overall efficiency in generating sales from all its assets, both fixed and current. The Total Asset Turnover ratio ranges from 3.26 to 4.40, showing variability in Chewy's ability to generate sales relative to its total assets.

A declining Total Asset Turnover ratio could indicate inefficiencies in asset management or a slowdown in sales growth relative to the asset base. Conversely, an increasing ratio may signify improved asset utilization and sales generation efficiency.

Overall, analyzing Chewy Inc's long-term activity ratios can help assess the company's asset management and operational efficiency over time, providing valuable insights for investors and stakeholders.