Designer Brands Inc (DBI)
Receivables turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,074,980 | 3,315,430 | 3,196,580 | 2,234,720 | 3,492,690 |
| Receivables | US$ in thousands | 83,590 | 77,763 | 199,826 | 196,049 | 89,151 |
| Receivables turnover | 36.79 | 42.64 | 16.00 | 11.40 | 39.18 |
February 3, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,074,980K ÷ $83,590K
= 36.79
The receivables turnover ratio of Designer Brands Inc has fluctuated over the past five years. In fiscal year 2024, the company achieved a receivables turnover ratio of 36.79, which indicates that the company collected its accounts receivable approximately 36.79 times during the year. This represents an improvement compared to the previous two years, where the ratios were 42.64 and 16.00 in fiscal years 2023 and 2022, respectively.
The significant increase in the receivables turnover ratio from 16.00 in fiscal year 2022 to 42.64 in fiscal year 2023 implies that the company improved its collection efficiency during that period. However, the ratio dropped to 11.40 in fiscal year 2021 before recovering to 39.18 in fiscal year 2020.
Overall, a higher receivables turnover ratio indicates better collection efficiency and management of accounts receivable. The fluctuations in the ratio over the years may be attributed to changes in the company's credit policies, customer payment behaviors, or economic conditions affecting the retail industry. Continued monitoring of the receivables turnover ratio will be essential to assess the company's effectiveness in managing its accounts receivable and maintaining healthy cash flows.
Peer comparison
Feb 3, 2024