Williams-Sonoma Inc (WSM)

Activity ratios

Short-term

Turnover ratios

	Jan 28, 2024	Oct 29, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Nov 1, 2020	Aug 2, 2020	May 3, 2020	Feb 2, 2020	Nov 3, 2019	Aug 4, 2019	May 5, 2019
Inventory turnover	1.66	1.44	1.60	1.54	1.50	1.33	1.45	1.58	1.75	1.68	1.71	1.69	1.73	1.48	1.59	1.57	1.52	1.35	1.41	1.45
Receivables turnover	63.06	63.79	70.60	78.19	74.98	69.31	64.25	68.23	62.62	57.65	54.72	51.26	47.23	48.82	46.71	56.22	52.80	53.49	52.25	55.87
Payables turnover	3.40	2.98	3.48	3.43	4.29	3.11	3.29	3.43	3.56	3.35	3.33	3.20	3.21	2.96	4.43	3.98	3.21	3.81	4.15	4.33
Working capital turnover	9.23	14.19	22.44	43.34	21.71	42.34	72.89	45.29	14.93	16.58	15.68	16.99	10.97	9.36	10.17	12.62	40.39	15.91	15.64	15.37

Based on the activity ratios of Williams-Sonoma Inc over the provided periods, we can observe the following trends:

1. Inventory turnover:
- The inventory turnover ratio has generally been in the range of 1.33 to 1.75 over the periods analyzed, indicating the number of times the inventory is sold and replaced during the year.
- There seems to be some fluctuation in the ratio, with a slight uptrend in recent periods. This could suggest improvements in inventory management efficiency.

2. Receivables turnover:
- The receivables turnover ratio has been consistently high, ranging from 47.23 to 78.19, reflecting the company's ability to collect outstanding receivables efficiently.
- The ratio shows a relatively stable trend over time, with no significant fluctuations, indicating strong control over credit and collection policies.

3. Payables turnover:
- The payables turnover ratio ranges from 2.96 to 4.43, indicating the speed at which the company pays its suppliers.
- The ratio displays some variability, with occasional peaks and troughs, but generally remains within a reasonable range, suggesting effective management of payables.

4. Working capital turnover:
- The working capital turnover ratio has shown significant variability, ranging from 9.23 to 72.89, indicating how efficiently the company utilizes its working capital to generate sales.
- There are fluctuations in the ratio across different periods, suggesting variations in the company's working capital management efficiency.

In conclusion, Williams-Sonoma Inc generally exhibits solid efficiency in managing its inventory, receivables, and payables. However, there are some fluctuations in working capital turnover, indicating the need for continued monitoring and improvement in working capital management practices.

Average number of days

		Jan 28, 2024	Oct 29, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Nov 1, 2020	Aug 2, 2020	May 3, 2020	Feb 2, 2020	Nov 3, 2019	Aug 4, 2019	May 5, 2019
Days of inventory on hand (DOH)	days	219.83	253.05	228.67	236.99	243.59	274.41	251.40	230.98	208.79	216.82	212.87	216.01	210.95	246.42	230.24	232.03	240.07	271.29	258.42	252.59
Days of sales outstanding (DSO)	days	5.79	5.72	5.17	4.67	4.87	5.27	5.68	5.35	5.83	6.33	6.67	7.12	7.73	7.48	7.81	6.49	6.91	6.82	6.99	6.53
Number of days of payables	days	107.22	122.37	104.96	106.45	85.03	117.19	110.85	106.31	102.61	108.81	109.46	114.18	113.83	123.11	82.41	91.75	113.70	95.77	87.97	84.31

Days of inventory on hand (DOH) for Williams-Sonoma Inc have shown some fluctuations over the past few quarters, ranging from a low of 208.79 days to a high of 274.41 days. The trend indicates a decrease in inventory efficiency in recent quarters, with more days required to sell off existing inventory.

Days of sales outstanding (DSO) have also varied, with the lowest being 4.67 days and the highest at 7.81 days. The trend suggests that the company has been collecting its accounts receivable faster in some quarters compared to others, which is a positive indicator of efficient credit management.

The number of days of payables has fluctuated as well, with a range from 82.41 days to 123.11 days. This indicates the number of days the company takes to pay its suppliers, with some quarters showing quicker payment cycles compared to others.

Overall, the activity ratios of Williams-Sonoma Inc reveal varying levels of efficiency in managing inventory turnover, collecting receivables, and managing payables. Tracking these ratios over time can provide insights into the company's operational performance and liquidity management.

Long-term

	Jan 28, 2024	Oct 29, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Nov 1, 2020	Aug 2, 2020	May 3, 2020	Feb 2, 2020	Nov 3, 2019	Aug 4, 2019	May 5, 2019
Fixed asset turnover	7.65	7.72	7.97	8.13	8.14	8.64	8.81	8.90	8.96	9.01	8.87	8.34	7.77	7.29	6.78	6.50	6.35	6.43	6.36	6.23
Total asset turnover	1.47	1.62	1.81	1.91	1.86	1.90	1.99	1.99	1.78	1.80	1.83	1.78	1.46	1.47	1.34	1.33	1.46	1.49	1.50	1.51

Williams-Sonoma Inc's fixed asset turnover ratio has shown a consistent trend of improvement over the analyzed periods, with values ranging from 6.23 to 9.01. This indicates that the company is generating more revenue per dollar invested in fixed assets each year, reflecting a more efficient utilization of these assets.

On the other hand, the total asset turnover ratio has fluctuated over the periods, with values ranging from 1.33 to 1.99. This ratio indicates how effectively the company is generating sales from its total assets. While the ratio has varied, it is essential to note that a higher ratio generally signifies better asset utilization.

Overall, the trends in both the fixed asset turnover and total asset turnover ratios suggest that Williams-Sonoma Inc has been efficiently managing its assets to generate sales revenue. The improvement in the fixed asset turnover ratio highlights the company's increasing efficiency in generating sales from its fixed assets.