Dick’s Sporting Goods Inc (DKS)
Cash conversion cycle
| 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 | — | — |
| Cash conversion cycle | days | 141.89 | 140.00 | 112.71 | 115.97 | 55.26 | 110.54 | 122.57 | 67.22 | 110.27 | 61.77 | 108.11 | 68.01 | 99.25 | 61.78 | 133.01 | 79.44 | 129.39 | 61.34 | 123.04 | 93.26 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 141.89 + — – —
= 141.89
The cash conversion cycle of Dick’s Sporting Goods Inc has shown fluctuating trends over the periods outlined in the data provided. The cash conversion cycle is a measure of how long it takes a company to convert its investments in inventory into cash flows from sales, considering both receivables and payables cycles.
Analyzing the data, we can see that the cash conversion cycle ranged from a low of 55.26 days on February 3, 2024, to a high of 141.89 days on January 31, 2025. This indicates that the company's efficiency in managing its cash flows from operations varied significantly over the periods presented.
The decreasing trend in the cash conversion cycle from July 30, 2022 (61.34 days) to February 3, 2024 (55.26 days) suggests that Dick’s Sporting Goods Inc was able to improve its liquidity position and convert its resources more swiftly during this time frame.
However, the significant increase in the cash conversion cycle from February 3, 2024 (55.26 days) to January 31, 2025 (141.89 days) could signal potential challenges in managing working capital efficiently or delays in converting inventory to cash.
Overall, monitoring the cash conversion cycle is crucial for assessing the company's operational efficiency and liquidity management. It is important for Dick’s Sporting Goods Inc to continue monitoring and optimizing its cash conversion cycle to ensure effective management of working capital and sustainable operations.
Peer comparison
Jan 31, 2025