Capri Holdings Ltd (CPRI)

Activity ratios

Short-term

Turnover ratios

	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Inventory turnover	6.26	4.93	4.54	4.24	4.66	4.14	4.16	3.84	4.31	4.78	5.25	5.78	5.45	4.03	3.66	4.03	5.42	4.20	3.54	3.45
Receivables turnover	15.46	15.43	13.85	18.11	15.16	15.52	13.36	14.65	13.05	11.98	14.14	12.71	10.84	10.94	12.51	25.36	17.96	17.71	14.95	17.03
Payables turnover	15.34	13.58	14.05	10.40	10.37	9.48	13.28	8.99	8.50	7.88	9.26	9.47	7.84	6.42	6.10	6.40	10.48	10.75	9.75	9.88
Working capital turnover	—	50.79	7.11	11.51	13.32	11.00	7.30	12.36	17.43	16.80	33.30	33.50	—	—	81.17	—	11.22	—	59.79	125.68

Capri Holdings Ltd's inventory turnover ratio has shown fluctuation over the past several quarters, ranging between 3.84 and 6.26. The increasing trend in inventory turnover indicates that the company is efficiently managing its inventory levels and turning over its inventory more quickly in recent quarters.

The receivables turnover ratio has also exhibited variability, but generally has been relatively stable around the 15 to 18 range in the most recent quarters. This suggests that the company is collecting its accounts receivable in a timely manner.

On the other hand, the payables turnover ratio has been inconsistent, with values bouncing between 6.10 and 15.34. A higher payables turnover ratio generally indicates that the company is efficiently managing its payables by paying its suppliers more quickly.

The working capital turnover ratio, though not consistently available in the data provided, shows periods of high turnover, indicating the company's ability to efficiently utilize its working capital to generate sales revenue.

In conclusion, the analysis of Capri Holdings Ltd's activity ratios suggests that the company has been effective in managing its inventory, receivables, payables, and working capital to drive operational efficiency and support its business activities.

Average number of days

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Days of inventory on hand (DOH)	days	58.29	74.10	80.44	86.00	78.35	88.13	87.67	95.14	84.77	76.36	69.55	63.10	66.93	90.56	99.69	90.65	67.29	86.88	103.00	105.75
Days of sales outstanding (DSO)	days	23.60	23.65	26.35	20.15	24.08	23.52	27.32	24.91	27.97	30.48	25.82	28.71	33.67	33.37	29.19	14.40	20.32	20.61	24.42	21.44
Number of days of payables	days	23.80	26.88	25.98	35.11	35.21	38.50	27.49	40.61	42.93	46.30	39.43	38.53	46.56	56.82	59.81	56.99	34.82	33.94	37.44	36.95

Capri Holdings Ltd's activity ratios provide insights into the efficiency with which the company manages its inventory, receivables, and payables.

1. Days of Inventory on Hand (DOH):
- The company's average days of inventory on hand decreased from 105.75 days in Sep 2019 to 58.29 days in Mar 2024, indicating an improvement in inventory management efficiency.
- The decreasing trend suggests that the company is managing its inventory more effectively, possibly through better demand forecasting or inventory control measures.

2. Days of Sales Outstanding (DSO):
- Capri Holdings' days of sales outstanding fluctuated over the periods, ranging from a low of 14.40 days in Jun 2020 to a high of 33.67 days in Mar 2021.
- A lower DSO implies that the company is collecting its accounts receivable faster, which is a positive sign of efficient credit management.
- The downward trend in DSO over time indicates an improvement in the company's ability to collect revenues from customers promptly.

3. Number of Days of Payables:
- The number of days of payables for Capri Holdings varied across the periods, with a range from 23.80 days to 59.81 days.
- A higher number of days of payables suggests that the company takes longer to pay its suppliers, potentially benefiting from extended credit terms.
- Fluctuations in this ratio can indicate changes in the company's relationship with suppliers or its cash flow management practices.

Overall, analyzing Capri Holdings Ltd's activity ratios provides valuable insights into its operational efficiency and effectiveness in managing working capital components.

Long-term

	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Fixed asset turnover	8.87	9.34	9.79	9.86	10.13	10.58	12.53	12.39	11.90	11.69	11.15	10.29	8.34	7.79	8.12	8.58	9.86	9.54	9.34	8.68
Total asset turnover	0.77	0.69	0.72	0.73	0.77	0.76	0.82	0.76	0.76	0.70	0.68	0.64	0.54	0.52	0.55	0.62	0.70	0.68	0.66	0.64

Capri Holdings Ltd's fixed asset turnover ratio has shown a decreasing trend over the past several quarters, from 12.53 in Sep 2022 to 8.87 in Mar 2024. This indicates that the company's fixed assets are generating less revenue relative to their value compared to previous periods. However, the company's fixed asset turnover remains relatively high, suggesting efficient utilization of fixed assets to generate sales.

On the other hand, the total asset turnover ratio has fluctuated throughout the periods, ranging from 0.52 in Dec 2020 to 0.82 in Sep 2022. The ratio has generally increased over the past quarters but displayed some variability. A total asset turnover ratio of less than 1 indicates that Capri Holdings Ltd generates less in sales than the total value of its assets.

Overall, the analyses of both the fixed asset turnover and total asset turnover ratios suggest that Capri Holdings Ltd may benefit from focusing on improving the efficiency of its assets to generate revenue and potentially increasing sales in relation to its total assets to enhance overall performance.