Foot Locker Inc (FL)

Short-term

Turnover ratios

To analyze Foot Locker Inc's activity ratios, we will focus on the following ratios: Inventory turnover, Receivables turnover, Payables turnover, and Working capital turnover.

1. Inventory Turnover:
- Foot Locker Inc's inventory turnover has fluctuated over the periods provided. The ratio ranged from a low of 2.78 to a high of 5.00. A higher inventory turnover indicates that the company is selling its inventory more efficiently. The increasing trend from 2023 to 2024 suggests a more efficient management of inventory.

2. Receivables Turnover:
- Unfortunately, data for receivables turnover is missing for most of the periods provided. However, in the periods where data is available, the turnover was around 54.65 and 54.58. A higher turnover ratio signifies that the company is collecting its receivables quickly. The lack of data for most periods may indicate a need for improved reporting or management of receivables.

3. Payables Turnover:
- The payables turnover ratio shows how quickly the company is paying its suppliers. Foot Locker Inc's payables turnover ranged from 8.30 to 20.60. A higher turnover implies the company is managing its payables effectively. The fluctuating values suggest varying payment practices over the periods analyzed.

4. Working Capital Turnover:
- The working capital turnover ratio indicates how efficiently the company is using its working capital to generate sales. The values fluctuated between 8.26 and 14.43. A higher turnover ratio indicates effective utilization of working capital. The decreasing trend over the periods suggests a decrease in the efficiency of converting working capital into sales.

Overall, Foot Locker Inc's activity ratios show varying levels of efficiency in managing its inventory, receivables, payables, and working capital. Monitoring these ratios over time can provide insights into the company's operational efficiency and effectiveness in financial management.

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Average number of days

Based on the provided data for Foot Locker Inc, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- The company's average DOH over the reported periods is around 101.36 days. This indicates that on average, Foot Locker holds inventory for about 101 days before selling it.
- The trend in DOH shows some fluctuations but generally remains relatively stable over time. The company appears to have effectively managed its inventory levels to meet consumer demand without excessive holding.

2. Days of Sales Outstanding (DSO):
- The DSO data is missing for most of the periods, except for a few points where it is available. This makes it challenging to analyze the efficiency of Foot Locker's accounts receivable management.
- In the instances where DSO is provided, the numbers are relatively low, indicating that the company collects receivables quickly once sales are made.

3. Number of Days of Payables:
- The average number of days of payables for Foot Locker is approximately 29.77 days based on the available data.
- The company seems to maintain a moderate payable period, indicating a balanced approach to managing its payables, neither significantly delaying payments nor paying too quickly.

Overall, based on the limited data provided, Foot Locker appears to have a relatively efficient inventory management system and a balanced approach to managing its payables. However, more consistent DSO data would be necessary to provide a comprehensive analysis of the company's overall activity ratios.

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Long-term

The fixed asset turnover ratio measures how efficiently a company generates revenue from its fixed assets. For Foot Locker Inc, we observe fluctuations in the fixed asset turnover ratio over the years. The ratio was relatively stable around 2.5 in the initial periods but saw a significant increase to around 9.5 in the middle of 2022, indicating a sudden boost in revenue generated from fixed assets. However, the ratio decreased in the following periods but remained above 2.4.

On the other hand, the total asset turnover ratio, which evaluates the company's overall efficiency in generating revenue from all assets, shows a varying trend for Foot Locker Inc. The ratio hovered around 1.1 in the beginning but saw fluctuations throughout the years, reaching a peak of 1.27 in early 2024.

Overall, the fixed asset turnover ratio reveals that Foot Locker Inc has efficiently utilized its fixed assets to generate revenue, although there have been periods of fluctuation. The total asset turnover ratio indicates varying levels of efficiency in utilizing all assets to generate sales over the years, with some periods showing better performance than others.