Foot Locker Inc (FL)
Cash conversion cycle
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 68.56 | 73.71 | 57.06 | 46.63 | 60.08 |
| Days of sales outstanding (DSO) | days | 7.16 | 6.67 | 5.47 | 6.00 | 4.56 |
| Number of days of payables | days | 16.63 | 22.07 | 26.86 | 20.31 | 16.56 |
| Cash conversion cycle | days | 59.09 | 58.30 | 35.67 | 32.32 | 48.08 |
February 3, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 68.56 + 7.16 – 16.63
= 59.09
The cash conversion cycle of Foot Locker Inc has varied over the past five years. In the latest fiscal year, ending on February 3, 2024, the company's cash conversion cycle was 59.09 days. This indicates that it took Foot Locker approximately 59 days from the initial outlay of cash for inventory purchases to the collection of cash from sales.
Comparing this figure to previous years, we see fluctuations in the cash conversion cycle. In Jan 28, 2023, it was slightly lower at 58.30 days, but in Jan 29, 2022, it significantly dropped to 35.67 days, indicating an improvement in efficiency in managing the conversion of assets to cash. The trend continued positively in Jan 30, 2021, with a further decrease to 32.32 days, showing even better management of cash flow.
However, there was a slight increase in the cash conversion cycle in Feb 1, 2020, reaching 48.08 days, indicating a possible slowdown in the efficiency of converting inventory into cash during that period.
Overall, the cash conversion cycle for Foot Locker Inc has shown some volatility over the analyzed period, with fluctuations indicating variations in operational efficiency in terms of managing working capital and converting investments in inventory into sales revenue.
Peer comparison
Feb 3, 2024