Dick’s Sporting Goods Inc (DKS)
Cash conversion cycle
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 85.95 | 91.68 | 81.72 | 80.60 | 95.59 |
| Days of sales outstanding (DSO) | days | 3.34 | 2.36 | 2.09 | 2.28 | 2.21 |
| Number of days of payables | days | 38.88 | 39.06 | 45.57 | 51.91 | 43.48 |
| Cash conversion cycle | days | 50.40 | 54.98 | 38.24 | 30.97 | 54.33 |
February 3, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 85.95 + 3.34 – 38.88
= 50.40
The cash conversion cycle of Dick’s Sporting Goods Inc has fluctuated over the past five years. In the latest fiscal year, ending on February 3, 2024, the cash conversion cycle was 50.40 days, representing the number of days it takes for the company to convert its investments in inventory and other resources into cash flows from sales. This indicates a slight improvement compared to the previous fiscal year, where the cycle was 54.98 days.
Looking back further, we observe that the cash conversion cycle was 38.24 days in fiscal year 2022, reflecting a shorter time frame for Dick’s Sporting Goods Inc to complete its cash conversion process. The fastest cash conversion cycle recorded in the provided data was in fiscal year 2021, with only 30.97 days required for the company to complete the cycle.
On the contrary, in fiscal year 2020, the cash conversion cycle was notably longer at 54.33 days, indicating a less efficient cash conversion process during that period.
Overall, while there have been fluctuations in the cash conversion cycle of Dick’s Sporting Goods Inc over the past five years, the company should monitor and strive to optimize its cycle to enhance operational efficiency and cash flow management.
Peer comparison
Feb 3, 2024