Urban Outfitters Inc (URBN)
Cash conversion cycle
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 62.64 | 81.51 | 62.79 | 60.86 | 58.60 | 77.45 | 63.16 | 63.71 | 63.67 | 81.73 | 78.50 | 72.84 | 68.07 | 79.22 | 63.09 | 66.11 | 54.95 | 68.04 | 48.56 | 44.95 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 62.64 | 81.51 | 62.79 | 60.86 | 58.60 | 77.45 | 63.16 | 63.71 | 63.67 | 81.73 | 78.50 | 72.84 | 68.07 | 79.22 | 63.09 | 66.11 | 54.95 | 68.04 | 48.56 | 44.95 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 62.64 + — – —
= 62.64
The cash conversion cycle of Urban Outfitters Inc shows fluctuations over the periods provided in the data. The cash conversion cycle, which is a measure of the time it takes for a company to convert its investment in inventory and other resources into cash from sales, ranged between 44.95 days and 81.73 days during the specific dates.
Analyzing the trends, we observe that the cash conversion cycle increased from around 45 days in April 2020 to over 80 days by October 2024, with varying levels in between. This suggests that the company may have experienced challenges in managing its working capital efficiently.
A longer cash conversion cycle indicates that Urban Outfitters Inc may be taking longer to sell its inventory and collect cash from customers, potentially leading to liquidity issues. On the other hand, a shorter cycle would imply quicker turnover of inventory and cash flow, which could be more favorable for the company's financial health.
Overall, monitoring and managing the cash conversion cycle is crucial for Urban Outfitters Inc to optimize its working capital and ensure efficient cash flow operations. Understanding the reasons behind the fluctuations and taking necessary steps to streamline processes can help improve the company's financial performance and liquidity position.
Peer comparison
Jan 31, 2025