Foot Locker Inc (FL)
Working capital turnover
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,988,000 | 8,159,000 | 8,168,000 | 8,759,000 | 8,761,000 |
| Total current assets | US$ in thousands | 2,259,000 | 2,225,000 | 2,225,000 | 2,521,000 | 2,521,000 |
| Total current liabilities | US$ in thousands | 1,330,000 | 1,291,000 | 1,291,000 | 1,610,000 | 1,610,000 |
| Working capital turnover | 8.60 | 8.74 | 8.75 | 9.61 | 9.62 |
January 31, 2025 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,988,000K ÷ ($2,259,000K – $1,330,000K)
= 8.60
Based on the data provided, Foot Locker Inc's working capital turnover has shown a slight decrease over the years. The working capital turnover ratio measures the efficiency of the company in using its working capital to generate sales revenue.
The working capital turnover ratio for Foot Locker Inc was 9.62 on January 28, 2023, and decreased slightly to 9.61 on January 31, 2023. Subsequently, there was a more noticeable decline to 8.75 on January 31, 2024, and a further decrease to 8.74 on February 3, 2024. The ratio then decreased to 8.60 on January 31, 2025, indicating a downward trend in the utilization of working capital to support sales.
A declining working capital turnover ratio may suggest that the company is inefficient in managing its working capital to generate sales, which could potentially point to issues with inventory management or collection of accounts receivable. Further analysis of the company's operational and financial performance may be necessary to identify the root cause of the decreasing trend in the working capital turnover ratio.
Peer comparison
Jan 31, 2025