Williams-Sonoma Inc (WSM)
Activity ratios
Short-term
Turnover ratios
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 30, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.06 | 2.76 | 2.92 | 3.05 | 2.70 | 2.60 | 2.24 | 2.28 | 3.16 | 2.73 | 3.10 | 2.63 | 2.47 | 2.11 | 1.98 | 2.69 | 2.54 | 3.00 | 2.94 | 2.71 |
| Receivables turnover | — | — | — | — | — | 63.86 | — | 59.03 | — | 72.83 | — | — | 77.59 | — | 64.47 | — | 71.45 | — | — | 64.13 |
| Payables turnover | — | — | — | — | — | 5.33 | — | 4.71 | — | 5.94 | — | — | 7.08 | — | 4.64 | — | 5.52 | — | — | 5.51 |
| Working capital turnover | 9.15 | 11.74 | 8.12 | 8.47 | 9.85 | 9.35 | 13.31 | 13.14 | 21.54 | 23.15 | 44.94 | 23.25 | 22.46 | 40.84 | 39.38 | 71.56 | 47.43 | 48.27 | 16.29 | 15.29 |
Based on the provided data, I have analyzed the activity ratios of Williams-Sonoma Inc as follows:
1. Inventory Turnover: The inventory turnover ratio indicates how many times a company's inventory is sold and replaced over a period. Williams-Sonoma Inc's inventory turnover has fluctuated over the period, ranging from a low of 1.98 to a high of 3.16. The company experienced an overall increasing trend in inventory turnover, with the highest turnover observed in April 2023.
2. Receivables Turnover: The receivables turnover ratio reflects how efficiently a company collects its accounts receivables. Williams-Sonoma Inc has inconsistent data for receivables turnover, with missing or unreported values for several periods. When data is available, the turnover ratios vary notably, with a range of 59.03 to 77.59, indicating fluctuations in the efficiency of collecting receivables.
3. Payables Turnover: The payables turnover ratio measures how quickly a company pays its suppliers. Similar to receivables turnover, Williams-Sonoma Inc's payables turnover data is incomplete with many missing values. The available data shows varying turnover ratios, ranging from 4.64 to 7.08, suggesting changes in the company's payment practices over time.
4. Working Capital Turnover: The working capital turnover ratio indicates how effectively a company utilizes its working capital to generate sales. Williams-Sonoma Inc's working capital turnover has shown a decreasing trend over the period, with values declining from 71.56 to 8.12. This suggests a potential decrease in the efficiency of utilizing working capital to generate revenue.
In conclusion, the analysis of Williams-Sonoma Inc's activity ratios reveals fluctuations and trends in inventory turnover, receivables turnover, payables turnover, and working capital turnover over the specified period. It is important for the company to closely monitor these ratios to assess operational efficiency, liquidity management, and cash flow dynamics.
Average number of days
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 119.34 | 132.03 | 125.01 | 119.83 | 135.27 | 140.51 | 162.80 | 160.28 | 115.39 | 133.85 | 117.79 | 138.64 | 147.67 | 172.73 | 184.05 | 135.59 | 143.78 | 121.59 | 124.17 | 134.67 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | 5.72 | — | 6.18 | — | 5.01 | — | — | 4.70 | — | 5.66 | — | 5.11 | — | — | 5.69 |
| Number of days of payables | days | — | — | — | — | — | 68.53 | — | 77.51 | — | 61.44 | — | — | 51.55 | — | 78.60 | — | 66.18 | — | — | 66.18 |
Based on the activity ratios provided for Williams-Sonoma Inc, let's analyze the key metrics:
1. Days of Inventory on Hand (DOH):
- The Days of Inventory on Hand indicates how many days, on average, the company holds inventory before it is sold.
- Williams-Sonoma's DOH fluctuated over the period, ranging from a low of 115.39 days to a high of 184.05 days.
- A decreasing trend in DOH suggests efficient inventory turnover, while an increasing trend may indicate overstocking or slow sales.
2. Days of Sales Outstanding (DSO):
- The Days of Sales Outstanding measures how long it takes for the company to collect revenue after a sale is made.
- Williams-Sonoma's DSO varied across the period, with some periods showing no data available.
- Lower DSO values are generally preferable as they indicate faster cash collection from customers.
3. Number of Days of Payables:
- The Number of Days of Payables illustrates how long it takes the company to pay its suppliers.
- Williams-Sonoma's payables days revealed fluctuations, with some periods having no data reported.
- An increase in payables days may suggest the company is taking longer to settle its bills, potentially indicating cash flow challenges.
In summary, analyzing these activity ratios can provide valuable insights into Williams-Sonoma Inc's operational efficiency, inventory management, cash flow, and payment practices over the given period. It is essential for stakeholders to monitor these ratios to understand the company's financial health and performance in managing its working capital effectively.
See also:
Williams-Sonoma Inc Short-term (Operating) Activity Ratios (Quarterly Data)
Long-term
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 30, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 7.75 | 3.29 | 7.14 | 3.50 | 8.22 | 8.43 | 3.95 | 8.42 | 3.68 | 8.04 | 3.92 | 9.32 | 4.37 | 4.38 | 9.17 |
| Total asset turnover | 1.45 | 1.52 | 1.54 | 1.56 | 1.57 | 1.49 | 1.52 | 1.50 | 1.74 | 1.86 | 1.98 | 1.99 | 1.92 | 1.83 | 1.77 | 1.95 | 2.09 | 2.12 | 1.95 | 1.83 |
Williams-Sonoma Inc's long-term activity ratios, specifically the Fixed Asset Turnover and Total Asset Turnover, provide insights into how efficiently the company is utilizing its assets to generate sales revenue.
The Fixed Asset Turnover ratio, which measures the company's ability to generate sales using its fixed assets, fluctuated over the period. It ranged from a high of 9.32 in May 2022 to a low of 3.29 in October 2023. The ratio generally showed a decreasing trend from 2022 to 2023, indicating a decline in efficiency in generating sales with fixed assets. However, there was a slight improvement in the ratio in the subsequent periods, reaching 7.75 in January 2024.
On the other hand, the Total Asset Turnover ratio, reflecting how effectively the company is using all its assets to generate revenue, also displayed variability over time. The ratio ranged from 1.83 in January 2022 to 1.45 in January 2025. The trend for this ratio was more inconsistent compared to the Fixed Asset Turnover ratio, with fluctuations observed throughout the period.
In summary, the analysis of Williams-Sonoma Inc's long-term activity ratios indicates fluctuations in the efficiency of asset utilization to generate sales revenue. Monitoring these trends can help stakeholders assess the company's operational performance and efficiency in managing its assets over time.
See also:
Williams-Sonoma Inc Long-term (Investment) Activity Ratios (Quarterly Data)