Foot Locker Inc (FL)
Receivables turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,159,000 | 8,761,000 | 8,946,000 | 7,541,000 | 8,002,000 |
| Receivables | US$ in thousands | 160,000 | 160,000 | 134,000 | 124,000 | 100,000 |
| Receivables turnover | 50.99 | 54.76 | 66.76 | 60.81 | 80.02 |
February 3, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $8,159,000K ÷ $160,000K
= 50.99
The receivables turnover ratio is a measure of how efficiently a company manages its accounts receivable by converting them into cash. Foot Locker Inc's receivables turnover ratio has shown a decreasing trend over the past five years, indicating a longer time taken to collect outstanding receivables.
In the most recent fiscal year ending on February 3, 2024, Foot Locker Inc's receivables turnover ratio stood at 50.99, down from 54.76 in the previous year. This suggests that the company took approximately 50.99 days to collect its average accounts receivable balance during the fiscal year.
Comparing the current ratio to historical data, Foot Locker Inc's receivables turnover ratio has been fluctuating, with the highest turnover of 80.02 recorded on February 1, 2020. This fluctuation may indicate changes in the company's credit policies, industry conditions, or customer payment behaviors over the years.
Overall, a declining trend in the receivables turnover ratio may suggest potential issues with collecting receivables promptly, which could impact the company's cash flow and liquidity position. It is essential for Foot Locker Inc to closely monitor and improve its accounts receivable management practices to ensure efficient cash conversion and financial stability.
Peer comparison
Feb 3, 2024