Dick’s Sporting Goods Inc (DKS)
Cash conversion cycle
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 141.89 | 85.95 | 123.22 | 127.82 | 91.68 |
| Days of sales outstanding (DSO) | days | — | 3.34 | — | — | 2.36 |
| Number of days of payables | days | — | 38.88 | — | — | 39.06 |
| Cash conversion cycle | days | 141.89 | 50.40 | 123.22 | 127.82 | 54.98 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 141.89 + — – —
= 141.89
Dick’s Sporting Goods Inc cash conversion cycle has shown fluctuations over the years.
As of January 28, 2023, the cash conversion cycle stood at 54.98 days, indicating that the company took just under 55 days to convert its resources into cash.
However, by January 31, 2023, the cycle increased significantly to 127.82 days, suggesting a delayed conversion of inventory into sales and subsequently into cash.
The trend continued to January 31, 2024, with a slightly decreased cash conversion cycle of 123.22 days, but still at a higher level compared to the beginning of 2023.
By February 3, 2024, there was a notable improvement in the cash conversion cycle to 50.40 days, possibly indicating more efficient management of inventory and receivables.
Nevertheless, by January 31, 2025, the cycle increased substantially to 141.89 days, signifying a longer duration for the company to convert its resources into cash.
Overall, the fluctuations in Dick’s Sporting Goods Inc cash conversion cycle demonstrate varying efficiencies in managing its working capital components over the years.
Peer comparison
Jan 31, 2025