Dick’s Sporting Goods Inc (DKS)
Working capital turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 13,017,800 | 12,284,800 | 12,247,100 | 9,545,990 | 8,772,600 |
| Total current assets | US$ in thousands | 4,890,050 | 4,963,190 | 5,106,660 | 3,759,650 | 2,410,020 |
| Total current liabilities | US$ in thousands | 2,752,390 | 2,641,450 | 2,712,680 | 2,550,200 | 2,076,470 |
| Working capital turnover | 6.09 | 5.29 | 5.12 | 7.89 | 26.30 |
February 3, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $13,017,800K ÷ ($4,890,050K – $2,752,390K)
= 6.09
Working capital turnover measures how efficiently a company utilizes its working capital to generate sales. A higher ratio indicates better efficiency in utilizing working capital.
Based on the data provided for Dick’s Sporting Goods Inc, the working capital turnover for the past five years has been fluctuating. In the most recent fiscal year, ending February 3, 2024, the working capital turnover ratio was 6.09, showing an improvement compared to the previous year's ratio of 5.29.
Interestingly, in the fiscal year ending February 1, 2020, the ratio spiked to a significantly high value of 26.30, indicating exceptional efficiency in converting working capital into sales. This could have been due to specific operational or financial strategies implemented during that period.
Overall, the working capital turnover for Dick’s Sporting Goods Inc has shown variability over the years, with some years being more efficient in utilizing working capital compared to others. This metric can be influenced by various factors such as inventory management, payment terms with suppliers, and sales levels.
Peer comparison
Feb 3, 2024