Foot Locker Inc (FL)

Short-term

Turnover ratios

Based on the provided data for Foot Locker Inc, here is a detailed analysis of the activity ratios:

1. Inventory Turnover:
- The inventory turnover ratio for Foot Locker Inc fluctuated over the years.
- It decreased from 4.95 in January 28, 2023, to 3.62 in January 31, 2023, then increased to 3.91 in January 31, 2024, and further improved to 5.32 in February 3, 2024, before declining to 3.72 by January 31, 2025.
- A high inventory turnover indicates that Foot Locker Inc is efficiently managing its inventory and converting it into sales.

2. Receivables Turnover:
- The receivables turnover ratio shows the number of times receivables are collected during a period.
- Foot Locker Inc reported a receivables turnover of 54.76 in January 28, 2023, and 50.99 in February 3, 2024, indicating efficient management of receivables.

3. Payables Turnover:
- The payables turnover ratio demonstrates how quickly Foot Locker Inc pays its suppliers.
- The data for this ratio is missing for most of the years, except for February 3, 2024, where the payables turnover was 21.95.

4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently Foot Locker Inc is utilizing its working capital to generate sales.
- The ratio remained relatively stable around 9 for the years provided in the data, ranging from 8.60 to 9.62.

Overall, the inventory turnover and receivables turnover ratios suggest efficient management of inventory and receivables by Foot Locker Inc. However, the missing data for payables turnover limits a comprehensive analysis of the company's ability to manage its payables effectively.

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Average number of days

Foot Locker Inc's activity ratios provide insight into the efficiency of the company's operations in managing its inventory, sales, and payables.

1. Days of Inventory on Hand (DOH): Foot Locker's DOH has shown fluctuations over the years, ranging from a low of 68.56 days on February 3, 2024, to a high of 100.70 days on January 31, 2023. A lower DOH indicates efficient inventory management, as the company is able to sell through its inventory quicker. However, a very low DOH may also imply stock-outs or lost sales opportunities. Overall, Foot Locker's DOH has ranged between 68.56 to 100.70 days over the reported periods, suggesting moderate inventory turnover efficiency.

2. Days of Sales Outstanding (DSO): The DSO metric measures how efficiently Foot Locker collects its accounts receivable. The available data shows varying DSO values for the company, ranging from 6.67 days on January 28, 2023, to 7.16 days on February 3, 2024. Lower DSO values are preferable as they indicate quicker cash collection from customers, improving cash flow and liquidity. However, the lack of DSO data for some periods makes it challenging to assess the consistency of Foot Locker's accounts receivable management.

3. Number of Days of Payables: The number of days of payables measures how long it takes for Foot Locker to pay its suppliers. The data provided indicates that Foot Locker has been effectively managing its payables, with the number of days ranging from 16.63 days on February 3, 2024, to 22.07 days on January 28, 2023. A higher number of days of payables suggests that the company is taking longer to settle its payables, potentially indicating good relationships with suppliers or the preservation of cash for other uses.

In conclusion, while Foot Locker Inc's activity ratios show some fluctuations, the company appears to have maintained relatively efficient inventory turnover and payable management practices. Further improvement in managing accounts receivable could enhance overall operational efficiency and financial performance.

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Long-term

The fixed asset turnover ratio measures how efficiently a company generates revenue using its fixed assets. In the case of Foot Locker Inc, the fixed asset turnover ratio has fluctuated over the years. In January 2023, the ratio was 9.52, indicating that Foot Locker's fixed assets were generating $9.52 in revenue for every $1 of fixed assets. However, by January 2024, the ratio was not available. Subsequently, in February 2024, the ratio improved to 8.77, suggesting that the company was able to generate more revenue from its fixed assets.

On the other hand, the total asset turnover ratio assesses how effectively a company utilizes all its assets to generate sales. For Foot Locker Inc, the total asset turnover ratio remained relatively stable between January 2023 and January 2025. The ratios for these years were around 1.11 to 1.19, implying that Foot Locker generated approximately $1.11 to $1.19 in revenue for every $1 of total assets during this period.

Overall, while the fixed asset turnover ratio experienced some variability, the total asset turnover ratio showed more consistency for Foot Locker Inc over the years analyzed.