Foot Locker Inc (FL)
Working capital turnover
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 7,988,000 | 8,108,000 | 8,531,000 | 8,620,000 | 8,733,000 | 8,229,000 | 7,709,000 | 7,651,000 | 7,590,000 | 8,063,000 | 8,528,000 | 8,773,000 | 9,016,000 | 8,744,000 | 8,480,000 | 8,479,000 | 8,646,000 | 8,922,000 | 9,046,000 | 9,060,000 |
| Total current assets | US$ in thousands | 2,259,000 | 2,386,000 | 2,343,000 | 2,355,000 | 2,225,000 | 2,225,000 | 2,374,000 | 2,374,000 | 2,371,000 | 2,371,000 | 2,455,000 | 2,397,000 | 2,521,000 | 2,521,000 | 2,338,000 | 2,338,000 | 2,315,000 | 2,315,000 | 2,233,000 | 2,376,000 |
| Total current liabilities | US$ in thousands | 1,330,000 | 1,432,000 | 1,412,000 | 1,405,000 | 1,291,000 | 1,291,000 | 1,459,000 | 1,459,000 | 1,452,000 | 1,452,000 | 1,518,000 | 1,460,000 | 1,610,000 | 1,610,000 | 1,522,000 | 1,522,000 | 1,585,000 | 1,585,000 | 1,556,000 | 1,748,000 |
| Working capital turnover | 8.60 | 8.50 | 9.16 | 9.07 | 9.35 | 8.81 | 8.43 | 8.36 | 8.26 | 8.77 | 9.10 | 9.36 | 9.90 | 9.60 | 10.39 | 10.39 | 11.84 | 12.22 | 13.36 | 14.43 |
January 31, 2025 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $7,988,000K ÷ ($2,259,000K – $1,330,000K)
= 8.60
Working capital turnover is a financial ratio that indicates how efficiently a company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio is generally preferred as it signifies that a company is effectively managing its current assets and liabilities.
Analyzing the working capital turnover trend of Foot Locker Inc over the past few years, we observe a gradual decline in the ratio from 14.43 in January 2022 to 8.60 in January 2025. This downward trend suggests a decreasing efficiency in converting working capital into sales revenue.
The decreasing trend could indicate potential issues related to inventory management, accounts receivable collection, or overall working capital optimization. It is essential for Foot Locker Inc to identify the root causes of this decline and implement strategies to improve the efficiency of its working capital management.
Furthermore, a lower working capital turnover ratio may imply that the company is tying up more funds in working capital compared to generating sales, which can impact profitability and liquidity. Therefore, Foot Locker Inc should focus on enhancing its working capital turnover ratio to improve operational efficiency and financial performance.
Peer comparison
Jan 31, 2025