Foot Locker Inc (FL)

Short-term

Turnover ratios

Inventory turnover for Foot Locker Inc has been relatively stable over the past few quarters, averaging around 3 to 5 times per year. This indicates that the company is efficiently managing its inventory levels and turning over its stock effectively.

The receivables turnover ratio provides insight into how quickly the company is collecting payments from its customers. This ratio has shown significant fluctuations, with values ranging from approximately 50 to 80 times per year. It reveals that Foot Locker has been successful in collecting payments from its customers in a timely manner, although data gaps make it difficult to analyze the trend comprehensively.

The payables turnover ratio reflects how quickly the company is paying its suppliers. Foot Locker's payables turnover has been relatively consistent, with values typically ranging between 9 to 13 times per year. This suggests that the company is effectively managing its accounts payable and maintaining good relationships with its suppliers.

The working capital turnover ratio indicates how efficiently the company is utilizing its working capital to generate sales. Foot Locker's working capital turnover has shown some variability, although it generally ranges from 5 to 14 times per year. This implies that the company is effectively using its working capital to support its business operations and generate revenue.

Overall, Foot Locker Inc's activity ratios suggest that the company is effectively managing its inventory, receivables, payables, and working capital to support its business operations and drive sales growth. Additional data points and trend analysis over time would provide a more comprehensive understanding of the company's performance in these areas.

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Average number of days

The activity ratios of Foot Locker Inc provide insights into the efficiency of the company's management of inventory, receivables, and payables.

- Days of Inventory on Hand (DOH) has shown fluctuations over the period, ranging from 6 days to over 6,800 days. The trend suggests significant variability in managing inventory levels, with a sharp decrease in recent periods indicating potentially improved inventory turnover efficiency.

- Days of Sales Outstanding (DSO) data is not available for most periods, limiting the analysis of the company's collection efficiency. However, the available data points to a collection period of around 4 to 7 days, which indicates a relatively quick turnaround time in converting sales into cash.

- Number of Days of Payables portrays a consistent trend of around 30 to 40 days over the analyzed periods. This suggests that Foot Locker Inc maintains a stable payment policy with its suppliers, neither delaying nor accelerating payment significantly.

Overall, Foot Locker Inc appears to be making progress in optimizing its inventory management, maintaining a favorable collection period, and sustaining a consistent approach to managing payables. Further scrutiny and comparison with industry benchmarks can provide a more comprehensive assessment of the company's activity efficiency.

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Long-term

Foot Locker Inc's long-term activity ratios provide insight into how efficiently the company is utilizing its assets. The fixed asset turnover ratio indicates how effectively the company generates sales from its investment in fixed assets, such as property and equipment. The trend in Foot Locker's fixed asset turnover ratio has been relatively stable over the periods analyzed, ranging from 8.77 to 11.74. This suggests that Foot Locker is consistently generating sales from its fixed assets, with a peak performance in generating revenue seen in October 2021.

On the other hand, the total asset turnover ratio measures how well the company generates sales from all its assets. Foot Locker's total asset turnover ratio fluctuated between 1.05 and 1.22 during the periods reviewed, showing some variability. The higher values represent more efficient asset utilization. Notably, there was a spike in total asset turnover in February 2020 and November 2019, indicating that Foot Locker effectively generated sales from its total asset base during those periods.

Overall, Foot Locker Inc has maintained a relatively strong performance in terms of asset turnover, both for fixed assets and total assets, reflecting efficient utilization of assets to generate sales revenue. However, management should continue to monitor these ratios to ensure consistent efficiency in asset utilization and optimize the company's operational performance.