Dick’s Sporting Goods Inc (DKS)

Short-term

Turnover ratios

Based on the provided data for Dick’s Sporting Goods Inc, let's analyze the activity ratios:

1. Inventory Turnover:
- The inventory turnover ratio indicates how efficiently the company is managing its inventory by measuring the number of times inventory is sold and replaced over a period.
- In January 28, 2023, the inventory turnover was 3.98, showing that inventory was turning over approximately 3.98 times during that period.
- The trend shows a slight decrease in inventory turnover from January 28, 2023 (3.98) to January 31, 2025 (2.57), indicating potential issues with managing inventory levels efficiently.

2. Receivables Turnover:
- Receivables turnover ratio measures how quickly the company is collecting its accounts receivable during a specific period.
- The data provided shows that the receivables turnover was not reported for January 31, 2023, January 31, 2024, and January 31, 2025.
- However, on February 3, 2024, the receivables turnover was 109.41, indicating that the company was collecting its receivables significantly faster during that period.

3. Payables Turnover:
- The payables turnover ratio reflects how often a company pays its suppliers during a specific time frame.
- Similar to receivables, the payables turnover was not reported for January 31, 2023, January 31, 2024, and January 31, 2025.
- On February 3, 2024, the payables turnover was reported as 9.39, which suggests that the company pays its suppliers approximately 9.39 times during that particular period.

4. Working Capital Turnover:
- Working capital turnover ratio measures how effectively a company is using its working capital to generate sales.
- The data indicates a generally consistent working capital turnover ratio over the years, ranging from 5.29 in January 28, 2023, to 6.09 in February 3, 2024.
- A higher working capital turnover ratio signifies better utilization of working capital to generate sales revenue.

In summary, the analysis of Dick’s Sporting Goods Inc activity ratios reveals insights into the efficiency of inventory management, receivables collection, payables payment, and the utilization of working capital over the specified periods.

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Average number of days

Based on the provided data for Dick’s Sporting Goods Inc, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- In January 2023, Dick’s Sporting Goods held inventory for an average of 91.68 days.
- By January 2025, this number had increased to 141.89 days.
- The trend indicates a rise in the days inventory is held, which may suggest slower inventory turnover or possible issues with inventory management efficiency.

2. Days of Sales Outstanding (DSO):
- In January 2023, the company had a DSO of 2.36 days, which indicates a quick turnover of sales into cash.
- By February 2024, the DSO had slightly increased to 3.34 days.
- A lower DSO indicates quick collection of accounts receivable, which can be a positive sign for liquidity.

3. Number of Days of Payables:
- In January 2023 and subsequent years, data is not available for the number of days of payables.
- Having lower days of payables could mean that the company is settling its payables promptly, which might impact cash flows and vendor relationships.

Overall, the analysis of activity ratios suggests that Dick’s Sporting Goods Inc may be facing challenges in managing its inventory efficiently, while maintaining a relatively strong position in terms of collecting receivables quickly. Further information on accounts payables management would provide a more complete picture of the company's liquidity and operational efficiency.

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Long-term

To analyze Dick’s Sporting Goods Inc’s long-term activity ratios, we will consider two key ratios: the Fixed Asset Turnover and the Total Asset Turnover.

1. Fixed Asset Turnover:
- In January 28, 2023, the Fixed Asset Turnover was 9.36, indicating that Dick’s Sporting Goods generated $9.36 in sales for each dollar invested in fixed assets.
- By January 31, 2023, the Fixed Asset Turnover decreased to 3.58, signaling a decrease in efficiency in utilizing fixed assets to generate sales.
- There is no data available for the Fixed Asset Turnover in January 31, 2024, but by February 3, 2024, the ratio recovered to 7.95, showing an improvement in efficiency compared to the previous period.
- In January 31, 2025, there is no data provided for this ratio, limiting the ability to assess the trend over the following years.

2. Total Asset Turnover:
- The Total Asset Turnover remained relatively stable over the period analyzed. In January 28, 2023, the ratio was 1.37, indicating that for every dollar of assets, Dick’s Sporting Goods generated $1.37 in sales.
- By January 31, 2023, the Total Asset Turnover slightly increased to 1.38, suggesting a marginal improvement in utilizing total assets to generate sales.
- The ratio continued to improve modestly, reaching 1.40 by February 3, 2024, indicating that the company was becoming more efficient in generating sales from its total assets.
- However, in January 31, 2025, the Total Asset Turnover dropped to 1.29, implying a slight decrease in efficiency in utilizing total assets to generate revenue.

Overall, the analysis of Dick’s Sporting Goods Inc’s long-term activity ratios shows fluctuations in efficiency in utilizing both fixed and total assets to generate sales over the period examined. While the Total Asset Turnover remained relatively stable, the Fixed Asset Turnover exhibited more variation, reflecting changes in the company’s utilization of its fixed assets for revenue generation.