Urban Outfitters Inc (URBN)

Short-term

Turnover ratios

Based on the provided data, we can analyze the activity ratios of Urban Outfitters Inc over the past five years:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory. A higher ratio indicates faster turnover and potentially better inventory management.
- Urban Outfitters Inc's inventory turnover has fluctuated over the years, ranging from 5.36 to 6.64. The decrease in 2022 followed by an increase in 2023 and 2025 may suggest some variation in inventory management efficiency.

2. Receivables Turnover:
- Receivables turnover ratio reflects how well a company collects its accounts receivable. A higher ratio indicates better efficiency in collecting outstanding payments.
- The data shows that Urban Outfitters Inc did not have receivables turnover information available for the past five years. This lack of data makes it challenging to evaluate the company's effectiveness in collecting receivables.

3. Payables Turnover:
- Payables turnover ratio measures how quickly a company pays its suppliers. A higher ratio suggests efficient payment practices.
- Similar to receivables turnover, there is no payables turnover data provided for Urban Outfitters Inc for the past five years. Without this information, it is difficult to assess the company's payment practices and relationships with suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio indicates how efficiently a company utilizes its working capital to generate sales. A higher ratio implies better utilization of resources.
- Urban Outfitters Inc's working capital turnover has varied from 10.88 to 17.87 over the period. The increase in 2024 suggests improved efficiency in utilizing working capital to generate sales, while fluctuations in other years may indicate changes in the company's operational effectiveness.

In conclusion, while the inventory turnover and working capital turnover ratios provide insights into Urban Outfitters Inc's inventory and working capital management efficiency, the lack of data for receivables turnover and payables turnover limits a comprehensive analysis of the company's overall activity ratios.

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Average number of days

Based on the provided data for Urban Outfitters Inc, we can analyze the company's activity ratios, specifically focusing on days of inventory on hand (DOH), days of sales outstanding (DSO), and number of days of payables.

1. Days of Inventory on Hand (DOH):
- The days of inventory on hand show how many days, on average, Urban Outfitters holds its inventory before selling it.
- The trend in the DOH for Urban Outfitters over the years shows some fluctuations, ranging from 54.95 days in January 2021 to 62.56 days in January 2025.
- A lower DOH indicates that the company has a faster turnover of its inventory, while a higher DOH suggests slower inventory turnover.
- Urban Outfitters' DOH has generally decreased from January 2021 to January 2025, indicating improved efficiency in managing inventory.

2. Days of Sales Outstanding (DSO):
- The days of sales outstanding measure the average number of days it takes for Urban Outfitters to collect payment after making a sale.
- The data provided shows that DSO values are not available for the years specified, which may indicate that the company does not experience significant delays in receiving payments from customers.
- A lower DSO is favorable as it indicates that the company is able to collect payments quickly and efficiently.

3. Number of Days of Payables:
- The number of days of payables represents the average number of days it takes for Urban Outfitters to pay its suppliers for goods or services.
- Similar to DSO, the data indicates that the number of days of payables is not available for the specified years, which could suggest that the company effectively manages its payables without significant delays or issues.
- A longer number of days of payables can indicate that the company is conserving cash by delaying payments to suppliers, but it could also signal potential strain on supplier relationships if excessively prolonged.

Overall, the analysis of these activity ratios for Urban Outfitters Inc suggests efficient inventory management and potentially effective accounts receivable and accounts payable processes. However, a more detailed analysis and comparison with industry peers would provide a clearer understanding of the company's performance in these areas.

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Long-term

Urban Outfitters Inc's long-term activity ratios show a positive trend in efficiency over the years.

The Fixed Asset Turnover ratio has improved significantly from 1.66 in January 2021 to 4.04 in January 2023. This indicates that the company is generating more sales relative to its investment in fixed assets over time. However, there is missing data for January 31, 2024 and January 31, 2025, which limits the ability to assess the trend in recent years.

Similarly, the Total Asset Turnover ratio has also shown an increasing trend from 0.97 in January 2021 to 1.23 in January 2025. This suggests that the company is utilizing its total assets more efficiently to generate sales. The slight decrease in the ratio in January 2024 compared to the previous year may indicate a temporary decline in efficiency.

Overall, the improving Fixed Asset Turnover and Total Asset Turnover ratios reflect Urban Outfitters Inc's ability to generate revenue efficiently in relation to its assets invested in the business.