Designer Brands Inc (DBI)
Working capital 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 |
| Total current assets | US$ in thousands | 777,432 | 789,931 | 914,216 | 780,585 | 900,810 |
| Total current liabilities | US$ in thousands | 622,271 | 636,126 | 758,917 | 752,683 | 680,031 |
| Working capital turnover | 19.82 | 21.56 | 20.58 | 80.09 | 15.82 |
February 3, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,074,980K ÷ ($777,432K – $622,271K)
= 19.82
Designer Brands Inc's working capital turnover ratio has shown fluctuations over the past five years. In the most recent fiscal year, as of February 3, 2024, the company's working capital turnover stood at 19.82, which indicates that the company generated approximately $19.82 in revenue for every dollar of working capital invested. This represents a decrease compared to the prior year, where the ratio was 21.56.
Despite the decrease from the previous year, the working capital turnover ratio for 2024 is still relatively strong, suggesting that Designer Brands Inc efficiently utilizes its working capital to generate sales. It is important to note that a higher turnover ratio is generally preferred as it indicates that the company is effectively managing its working capital.
Looking back at historical data, the working capital turnover ratio fluctuated over the five-year period. The ratio was highest in January 30, 2021, at 80.09, which indicates a significant increase in efficiency in utilizing working capital to generate sales. In contrast, the ratio was lowest in February 1, 2020, at 15.82, showing a lower level of effectiveness in converting working capital into revenue.
Overall, based on the trend over the past five years, Designer Brands Inc has generally maintained a reasonable level of working capital turnover efficiency, with some fluctuations in performance. Further analysis and comparison with industry benchmarks could provide additional insights into the company's working capital management effectiveness.
Peer comparison
Feb 3, 2024