Foot Locker Inc (FL)
Cash conversion cycle
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 98.24 | 68.56 | 93.43 | 100.70 | 73.71 |
| Days of sales outstanding (DSO) | days | — | 7.16 | — | — | 6.67 |
| Number of days of payables | days | — | 16.63 | — | — | 22.07 |
| Cash conversion cycle | days | 98.24 | 59.09 | 93.43 | 100.70 | 58.30 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 98.24 + — – —
= 98.24
To analyze Foot Locker Inc's cash conversion cycle based on the provided data, we observe fluctuations over the years. The cash conversion cycle represents the time taken to convert raw materials into cash receipts from sales, reflecting operational efficiency and liquidity management.
On January 28, 2023, the cash conversion cycle stood at 58.30 days, indicating a relatively efficient process. This figure increased significantly to 100.70 days by January 31, 2023, suggesting possible challenges in managing working capital.
By January 31, 2024, the cash conversion cycle improved to 93.43 days, showing signs of operational enhancements. However, by February 3, 2024, the cycle decreased significantly to 59.09 days, showcasing a potential acceleration in turning inventory into cash.
On January 31, 2025, the cash conversion cycle rose again to 98.24 days, indicating a longer cycle than the previous year. Overall, Foot Locker Inc's cash conversion cycle has demonstrated variability, highlighting the importance of continuous monitoring and proactive management of working capital to optimize operational efficiency and cash flow.
Peer comparison
Jan 31, 2025