Dick’s Sporting Goods Inc (DKS)
Activity ratios
Short-term
Turnover ratios
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 2.57 | 2.61 | 3.24 | 3.15 | 3.83 | 3.30 | 2.98 | 2.93 | 3.31 | 3.42 | 3.38 | 3.42 | 3.68 | 3.52 | 2.74 | 2.68 | 2.82 | 3.12 | 2.97 | 3.91 |
| Receivables turnover | — | — | — | — | 116.82 | — | — | 82.07 | — | 81.20 | — | 87.05 | — | 158.48 | — | 129.64 | — | 147.89 | — | — |
| Payables turnover | — | — | — | — | 8.47 | — | — | 5.89 | — | 7.39 | — | 8.51 | — | 8.27 | — | 6.10 | — | 6.27 | — | — |
| Working capital turnover | 5.75 | 5.82 | 6.34 | 6.49 | 6.50 | 6.16 | 6.40 | 6.29 | 5.39 | 5.55 | 5.32 | 5.37 | 5.63 | 5.42 | 5.44 | 5.32 | 5.34 | 5.44 | 4.95 | 5.09 |
Dick’s Sporting Goods Inc's inventory turnover ratio has ranged from 2.61 to 3.83 over the observed period. The company efficiently manages its inventory, with an average value around 3.20, indicating that it is able to sell and replace its inventory multiple times throughout the year.
In terms of receivables turnover, data is incomplete, but the available figures suggest a moderately high turnover rate when compared, considering figures like 147.89 for July 30, 2022. This indicates the company efficiently collects payments from its customers.
The payables turnover ratio ranges from 5.89 to 8.51, with an average around 7.50. This indicates that Dick’s Sporting Goods Inc pays its suppliers relatively quickly, which can be a sign of good relationships with vendors but may also suggest effective cash management.
Lastly, the working capital turnover ratio averages around 5.90, suggesting that the company effectively utilizes its working capital to generate sales. This ratio has shown a generally increasing trend, indicating improved efficiency in capital deployment over time.
Average number of days
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 141.89 | 140.00 | 112.71 | 115.97 | 95.21 | 110.54 | 122.57 | 124.70 | 110.27 | 106.69 | 108.11 | 106.73 | 99.25 | 103.62 | 133.01 | 136.43 | 129.39 | 117.07 | 123.04 | 93.26 |
| Days of sales outstanding (DSO) | days | — | — | — | — | 3.12 | — | — | 4.45 | — | 4.50 | — | 4.19 | — | 2.30 | — | 2.82 | — | 2.47 | — | — |
| Number of days of payables | days | — | — | — | — | 43.07 | — | — | 61.93 | — | 49.41 | — | 42.91 | — | 44.15 | — | 59.81 | — | 58.20 | — | — |
Based on the provided data, the activity ratios of Dick’s Sporting Goods Inc can be analyzed as follows:
1. Days of Inventory on Hand (DOH):
The days of inventory on hand represent the average number of days it takes for the company to sell its inventory. Dick’s Sporting Goods Inc has shown fluctuations in its DOH over the periods analyzed, ranging from 93.26 days to 141.89 days. A higher DOH indicates that the company is taking longer to sell its inventory, which could tie up capital and increase carrying costs.
2. Days of Sales Outstanding (DSO):
The days of sales outstanding measure how long it takes for the company to collect payment after making a sale. Dick’s Sporting Goods Inc has varying data for DSO, with values ranging from 2.30 days to 4.50 days. A lower DSO is generally favorable as it signifies quicker collection of receivables and better liquidity.
3. Number of Days of Payables:
This ratio indicates the average number of days the company takes to pay its suppliers. Dick’s Sporting Goods Inc has shown changes in its number of days of payables, with figures ranging from 42.91 days to 61.93 days. A higher number of days of payables may suggest the company is taking longer to settle its payables, which can be beneficial for cash flow management but could strain supplier relationships.
In conclusion, the analysis of Dick’s Sporting Goods Inc's activity ratios reveals varying trends in managing inventory, receivables, and payables over the periods examined. Monitoring these ratios can provide insights into the company's operational efficiency, working capital management, and overall financial health.
Long-term
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | 8.49 | — | 3.28 | 7.84 | 3.19 | 8.20 | 9.37 | 9.45 | 3.79 | 9.59 | 3.59 | 8.81 | 3.61 | 9.45 | 3.62 | — |
| Total asset turnover | 1.29 | 1.29 | 1.44 | 1.43 | 1.49 | 1.30 | 1.35 | 1.33 | 1.29 | 1.33 | 1.41 | 1.42 | 1.45 | 1.40 | 1.35 | 1.32 | 1.35 | 1.38 | 1.32 | 1.35 |
Based on the provided data for Dick’s Sporting Goods Inc, let's analyze the long-term activity ratios:
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how efficiently the company is using its fixed assets to generate sales.
- In the last reported periods:
- The ratios varied significantly, ranging from a low of 3.19 to a high of 9.59.
- There seems to be inconsistency in the utilization of fixed assets, with some periods showing high efficiency and others showing lower efficiency.
- It is important to analyze the reasons behind these fluctuations to understand the company's ability to generate sales from its fixed asset base consistently.
2. Total Asset Turnover:
- The total asset turnover ratio indicates the company's ability to generate sales from all assets on its balance sheet.
- Key observations for Dick’s Sporting Goods Inc include:
- The total asset turnover ratios ranged from 1.29 to 1.49, showing some variability but generally staying within a narrower range compared to fixed asset turnover ratios.
- The company has been able to maintain a relatively stable level of efficiency in generating sales from its total assets.
- A consistent or increasing total asset turnover ratio could indicate better asset utilization and operational efficiency over time.
In conclusion, while Dick’s Sporting Goods Inc has shown fluctuations in fixed asset turnover ratios, the total asset turnover ratios have been relatively stable. Further analysis of the reasons behind these fluctuations is necessary to assess the company's long-term operational efficiency and asset utilization.