Victoria's Secret & Co (VSCO)

Short-term

Turnover ratios

Based on the provided data, we can analyze the activity ratios of Victoria's Secret & Co as follows:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company is managing its inventory. Victoria's Secret & Co's inventory turnover has fluctuated over the years, ranging from a low of 3.88 to a high of 6.05. A higher turnover indicates that inventory is selling quickly, which is generally favorable for the company.

2. Receivables Turnover:
- The receivables turnover ratio reflects how efficiently a company is collecting on credit sales. Victoria's Secret & Co has data missing for some periods, but the available data shows a receivables turnover of 44.57 and 40.02 on the provided dates. A higher turnover indicates that credit sales are being collected quickly, which is beneficial for cash flow.

3. Payables Turnover:
- The payables turnover ratio measures how quickly a company is paying its suppliers. Victoria's Secret & Co also has missing data for some periods, but the available data shows a payables turnover of 12.20 and 11.62 on the provided dates. A higher turnover suggests that the company is efficiently managing its accounts payable.

4. Working Capital Turnover:
- The working capital turnover ratio indicates how efficiently a company is utilizing its working capital to generate sales. Victoria's Secret & Co shows a working capital turnover of 39.77, 40.15, and 94.39 on different dates. A higher turnover implies that the company is effectively using its working capital to drive revenue.

In summary, Victoria's Secret & Co has displayed varying levels of efficiency in managing its inventory, receivables, payables, and working capital over the analyzed periods. Investors and stakeholders may find these activity ratios useful in evaluating the company's operational performance and financial health.

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Average number of days

The activity ratios of Victoria's Secret & Co indicate the efficiency of the company in managing its inventory, receivables, and payables.

1. Days of Inventory on Hand (DOH):
- The days of inventory on hand decreased from 93.97 days as of January 31, 2023, to 60.31 days as of February 3, 2024, indicating an improvement in inventory management efficiency.
- However, the DOH increased to 88.34 days as of January 31, 2025, suggesting a slower turnover of inventory.

2. Days of Sales Outstanding (DSO):
- The days of sales outstanding were not reported for some periods, implying a lack of data for assessing the efficiency of the company in collecting receivables during those times.
- As of February 3, 2024, the DSO was 9.12 days, indicating a relatively quick turnover of receivables.

3. Number of Days of Payables:
- Similar to DSO, the number of days of payables was not provided for certain periods, making it challenging to evaluate the efficiency of managing payables during those times.
- As of February 3, 2024, the number of days of payables was 31.41 days, suggesting that the company takes about a month to pay its outstanding bills.

Overall, the data suggests that Victoria's Secret & Co has shown improvements in inventory and receivables management over time, but there is a need for more consistent reporting of payables data for a comprehensive assessment of the company's overall activity ratios.

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Long-term

The fixed asset turnover ratio for Victoria's Secret & Co indicates the company's ability to generate sales from its fixed assets. The trend for the fixed asset turnover ratio shows consistency over the years, with values ranging from 7.22 to 7.50. This suggests that the company efficiently utilizes its fixed assets to generate sales revenue.

On the other hand, the total asset turnover ratio reflects the company's overall efficiency in generating sales from all its assets. The total asset turnover ratio for Victoria's Secret & Co fluctuates slightly but remains relatively stable, with values ranging from 1.32 to 1.37. This indicates that the company is effectively utilizing its total assets to generate sales revenue.

Overall, based on the long-term activity ratios, Victoria's Secret & Co appears to be efficiently managing both its fixed assets and total assets to drive sales growth and maximize operational efficiency.