Dick’s Sporting Goods Inc (DKS)
Working capital turnover
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 13,017,810 | 12,654,970 | 12,559,680 | 12,437,340 | 12,284,760 | 12,041,110 | 11,842,240 | 12,016,360 | 12,247,140 | 12,023,010 | 11,688,490 | 11,126,140 | 9,545,980 | 9,032,850 | 8,595,710 | 8,156,230 | 8,751,730 | 8,634,180 | 8,529,250 | 8,447,530 |
| Total current assets | US$ in thousands | 4,890,050 | 4,944,000 | 5,022,040 | 4,942,990 | 4,963,190 | 4,986,460 | 5,076,670 | 5,256,660 | 5,106,660 | 4,046,160 | 4,418,940 | 4,041,320 | 3,759,650 | 3,545,300 | 3,093,250 | 3,840,400 | 2,410,020 | 2,876,920 | 2,466,020 | 2,439,700 |
| Total current liabilities | US$ in thousands | 2,752,390 | 2,989,390 | 2,775,680 | 2,525,160 | 2,641,450 | 2,762,130 | 2,781,950 | 2,802,840 | 2,712,680 | 2,668,300 | 2,567,300 | 2,587,510 | 2,550,200 | 2,537,770 | 2,283,380 | 1,886,980 | 2,076,470 | 2,081,640 | 1,925,390 | 1,855,390 |
| Working capital turnover | 6.09 | 6.47 | 5.59 | 5.14 | 5.29 | 5.41 | 5.16 | 4.90 | 5.12 | 8.73 | 6.31 | 7.65 | 7.89 | 8.97 | 10.61 | 4.18 | 26.24 | 10.86 | 15.78 | 14.46 |
February 3, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $13,017,810K ÷ ($4,890,050K – $2,752,390K)
= 6.09
The working capital turnover ratio of Dick’s Sporting Goods Inc has shown fluctuation over the past several quarters. The ratio indicates how efficiently the company is using its working capital to generate sales revenue.
The working capital turnover ratio has ranged from a low of 4.18 to a high of 26.24 over the period provided. A higher working capital turnover ratio is generally preferable, as it suggests that the company is effectively utilizing its working capital to generate revenue.
It is important to note that a very high or very low working capital turnover ratio may not always be ideal. For instance, an excessively high ratio could indicate that the company may be operating with a very lean level of working capital, which could potentially be risky in the event of unexpected changes in the business environment. On the other hand, a low ratio may suggest inefficiencies in the management of working capital.
Therefore, it is essential for Dick’s Sporting Goods Inc to analyze the reasons behind the fluctuations in the working capital turnover ratio and take appropriate measures to ensure optimal utilization of working capital to drive profitability and growth in the long term.
Peer comparison
Feb 3, 2024