Designer Brands Inc (DBI)
Cash conversion cycle
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 99.30 | 98.86 | 100.59 | 89.79 | 92.62 |
| Days of sales outstanding (DSO) | days | 9.92 | 8.56 | 22.82 | 32.02 | 9.32 |
| Number of days of payables | days | 50.29 | 41.68 | 58.47 | 46.50 | 43.79 |
| Cash conversion cycle | days | 58.93 | 65.74 | 64.94 | 75.31 | 58.15 |
February 3, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 99.30 + 9.92 – 50.29
= 58.93
The cash conversion cycle of Designer Brands Inc has shown varying trends over the past five years. In the most recent fiscal year, ending on February 3, 2024, the company's cash conversion cycle stood at 58.93 days, which is lower compared to the preceding fiscal year where it was 65.74 days. This reduction suggests that the company has improved its efficiency in managing its working capital and converting inventory and receivables into cash.
When comparing the latest fiscal year to two years ago, there was a marginal decrease in the cash conversion cycle from 64.94 days to 58.93 days. This indicates the company has been able to further streamline its operations and enhance cash flow management over this period.
Looking back three years to January 30, 2021, the cash conversion cycle was 75.31 days, indicating a significant improvement in the company's working capital management by seven days in the most recent fiscal year. Lastly, compared to February 1, 2020, where the cash conversion cycle was also at 58.15 days, there has been a slight increase in the latest fiscal year.
Overall, the trend in Designer Brands Inc's cash conversion cycle reflects ongoing efforts to optimize working capital management and operational efficiency. It is essential for the company to continue monitoring and improving this metric to ensure sustainable growth and profitability.
Peer comparison
Feb 3, 2024