Foot Locker Inc (FL)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 97.36 | 97.99 | 86.99 | 86.69 | 73.04 | 84.23 | 102.90 | 104.38 | 104.13 | 99.85 | 131.41 | 128.05 | 116.24 | 120.20 | 89.75 | 90.30 | 94.02 | 121.32 | 114.71 | 92.68 |
| Days of sales outstanding (DSO) | days | — | — | — | — | 6.69 | — | — | — | — | — | — | — | — | 6.68 | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | 17.72 | — | — | 33.24 | — | 28.03 | — | 34.53 | — | 36.00 | — | 27.97 | — | 43.98 | — | — |
| Cash conversion cycle | days | 97.36 | 97.99 | 86.99 | 86.69 | 62.01 | 84.23 | 102.90 | 71.14 | 104.13 | 71.82 | 131.41 | 93.53 | 116.24 | 90.89 | 89.75 | 62.32 | 94.02 | 77.34 | 114.71 | 92.68 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 97.36 + — – —
= 97.36
The cash conversion cycle measures how efficiently a company is able to convert its resources into cash. It consists of three components: the number of days inventory is held, the number of days it takes to collect receivables, and the number of days it takes to pay suppliers.
Analyzing the cash conversion cycle data for Foot Locker Inc:
- The cash conversion cycle fluctuated over the period under review, ranging from a low of 62.01 days on February 3, 2024, to a high of 131.41 days on April 30, 2023.
- The company saw a general improvement in the cash conversion cycle from the beginning of 2022 to early 2024, with some fluctuations in between.
- A lower number of days in the cash conversion cycle indicates that the company is able to more quickly convert its investments into cash, suggesting efficiency in managing inventory, receivables, and payables.
- Variations in the cash conversion cycle could indicate changes in the company's inventory management, accounts receivable collection practices, or payment terms with suppliers.
- Overall, Foot Locker Inc exhibited a relatively stable cash conversion cycle over the period, with some fluctuations but a trend towards improved efficiency in managing its cash conversion cycle towards the end of the period.
It is important for Foot Locker Inc to continue monitoring its cash conversion cycle and identify areas for improvement to optimize its working capital management and overall financial performance.
Peer comparison
Jan 31, 2025