Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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Short-term Activity Ratios (Summary)
Based on: 10-Q (reporting date: 2024-04-28), 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-K (reporting date: 2021-01-31), 10-Q (reporting date: 2020-11-01), 10-Q (reporting date: 2020-08-02), 10-Q (reporting date: 2020-05-03), 10-K (reporting date: 2020-02-02), 10-Q (reporting date: 2019-11-03), 10-Q (reporting date: 2019-08-04), 10-Q (reporting date: 2019-05-05), 10-K (reporting date: 2019-02-03), 10-Q (reporting date: 2018-10-28), 10-Q (reporting date: 2018-07-29), 10-Q (reporting date: 2018-04-29).
- Inventory Turnover
- The inventory turnover ratio demonstrates moderate fluctuations over the analyzed periods. Initially measured around 3.17 in early 2019, it sees small declines and recoveries, peaking at 4.12 in early 2021, followed by gradual decreases and some stabilization towards the later dates. This indicates variability in the efficiency of inventory management, with an overall tendency toward stable turnover around the mid-to-high 3 range.
- Receivables Turnover
- Receivables turnover shows a general upward trend from approximately 53 in early 2019 to values exceeding 70 by mid-2023, reaching a peak near 78 in late 2023 before a slight decline around early 2024. This suggests improving efficiency in collecting receivables over time, resulting in faster cash inflows.
- Payables Turnover
- The payables turnover ratio experiences notable fluctuations, starting near 6.78, with peaks exceeding 10 by late 2019 and troughs around 6.84 in late 2022. The inconsistency indicates changing payment practices to suppliers, with periods of quicker payments as well as stretches of slower payables turnover.
- Working Capital Turnover
- This ratio presents significant volatility, with very high values such as 40.38 in mid-2019 and 72.89 in mid-2022, interspersed with much lower metrics in the single digits towards early 2024. Such volatility suggests fluctuating efficiency in using working capital to generate revenue, likely influenced by changes in operational dynamics, sales, or capital management strategies.
- Average Inventory Processing Period
- The number of days inventory remains on hand varies between approximately 89 days and 125 days. It decreases to a low of 89 days in mid-2021 but generally exhibits a mild upward trend with intermittent fluctuations, indicating a slightly lengthening inventory holding period over time that may affect liquidity.
- Average Receivable Collection Period
- This period remains consistently low and stable, oscillating narrowly between 5 and 8 days throughout the entire timeline. Such consistency reflects strong and steady collection practices from customers.
- Operating Cycle
- The operating cycle, defined as the sum of inventory processing and receivables collection periods, fluctuates moderately between roughly 97 and 130 days. It shows a notable decrease around 2021 but gradually trends back upward through 2023, implying variations in operational efficiency and cash flow timing.
- Average Payables Payment Period
- The average period to pay suppliers varies considerably between 36 and 54 days, with no consistent directional trend. Periods of extended payment duration are followed by sharper reductions, indicating inconsistent supplier payment pacing and possible strategic adjustments in cash outflows.
- Cash Conversion Cycle
- The cash conversion cycle presents moderate fluctuation, with values generally ranging from about 49 to 87 days. It reaches a low near 49 days in late 2020 and trends higher towards mid-2023. These movements correspond to changes in inventory turnover, receivables, and payables periods, affecting the net liquidity cycle.
Turnover Ratios
Average No. Days
Inventory Turnover
Apr 28, 2024 | 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 | Feb 3, 2019 | Oct 28, 2018 | Jul 29, 2018 | Apr 29, 2018 | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||
Cost of goods sold | |||||||||||||||||||||||||||||||||
Merchandise inventories, net | |||||||||||||||||||||||||||||||||
Short-term Activity Ratio | |||||||||||||||||||||||||||||||||
Inventory turnover1 | |||||||||||||||||||||||||||||||||
Benchmarks | |||||||||||||||||||||||||||||||||
Inventory Turnover, Competitors2 | |||||||||||||||||||||||||||||||||
Amazon.com Inc. | |||||||||||||||||||||||||||||||||
Home Depot Inc. | |||||||||||||||||||||||||||||||||
Lowe’s Cos. Inc. | |||||||||||||||||||||||||||||||||
TJX Cos. Inc. |
Based on: 10-Q (reporting date: 2024-04-28), 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-K (reporting date: 2021-01-31), 10-Q (reporting date: 2020-11-01), 10-Q (reporting date: 2020-08-02), 10-Q (reporting date: 2020-05-03), 10-K (reporting date: 2020-02-02), 10-Q (reporting date: 2019-11-03), 10-Q (reporting date: 2019-08-04), 10-Q (reporting date: 2019-05-05), 10-K (reporting date: 2019-02-03), 10-Q (reporting date: 2018-10-28), 10-Q (reporting date: 2018-07-29), 10-Q (reporting date: 2018-04-29).
1 Q1 2025 Calculation
Inventory turnover
= (Cost of goods soldQ1 2025
+ Cost of goods soldQ4 2024
+ Cost of goods soldQ3 2024
+ Cost of goods soldQ2 2024)
÷ Merchandise inventories, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Cost of Goods Sold (COGS)
- The cost of goods sold exhibits clear seasonality, with a recurring pattern of higher values typically in the February quarters and lower values around the May quarters across multiple years. From 2018 through early 2020, COGS generally increased, peaking notably in February 2020 at approximately $1.15 billion. Subsequently, it fluctuated but showed several upward spikes, notably in January 2022 and October 2022, where values again surpassed $1.3 billion and $1.4 billion, respectively. The latest data for April 2024 indicates a marked decrease in COGS to $857 million, which is significantly lower than previous peaks and suggests a possible reduction in cost or sales volume during this period.
- Merchandise Inventories, Net
- Inventory levels reveal a general upward trend from 2018 through 2022, rising from approximately $1.05 billion to a peak near $1.69 billion in October 2022. This trend reflects an accumulation of stock over time. However, from October 2022 onwards, there is a noticeable decline in inventories, decreasing to $1.22 billion by April 2024. The data highlight a pattern where inventory levels tend to peak towards late calendar years and drop slightly in early-year quarters, consistent with inventory management aligned to anticipated sales cycles.
- Inventory Turnover Ratio
- Inventory turnover ratios, calculated for periods beginning February 2019, generally fluctuate between 2.9 and 4.1 times per period. The ratio peaked in the February 2021 quarter at 4.12, indicative of efficient inventory management and faster sales relative to inventory held at that time. Since then, the ratio shows variability, with declines after the 2021 peak and some recovery in mid to late 2023. The most recent data for April 2024 show a turnover of 3.47, suggesting moderate efficiency in inventory utilization compared to earlier peak periods.
- Overall Insights
- The financial data reflect seasonal and cyclical patterns in costs and inventory levels, with a tendency for higher costs and inventories in certain quarters aligned with typical retail cycles. The rising inventory levels through 2022 may indicate efforts to build stock possibly in anticipation of demand or supply chain considerations, followed by a strategic reduction in inventory in 2023 and early 2024. Inventory turnover variations indicate fluctuating operational efficiency, with some periods of rapid inventory movement and others showing slower turnover. The latest observations suggest the company may be managing inventory more conservatively, accompanied by a reduction in cost of goods sold, which may reflect changes in sales volume, pricing strategies, or supply chain dynamics.
Receivables Turnover
Apr 28, 2024 | 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 | Feb 3, 2019 | Oct 28, 2018 | Jul 29, 2018 | Apr 29, 2018 | |||||||||
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Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||
Net revenues | |||||||||||||||||||||||||||||||||
Accounts receivable, net | |||||||||||||||||||||||||||||||||
Short-term Activity Ratio | |||||||||||||||||||||||||||||||||
Receivables turnover1 | |||||||||||||||||||||||||||||||||
Benchmarks | |||||||||||||||||||||||||||||||||
Receivables Turnover, Competitors2 | |||||||||||||||||||||||||||||||||
Home Depot Inc. | |||||||||||||||||||||||||||||||||
TJX Cos. Inc. |
Based on: 10-Q (reporting date: 2024-04-28), 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-K (reporting date: 2021-01-31), 10-Q (reporting date: 2020-11-01), 10-Q (reporting date: 2020-08-02), 10-Q (reporting date: 2020-05-03), 10-K (reporting date: 2020-02-02), 10-Q (reporting date: 2019-11-03), 10-Q (reporting date: 2019-08-04), 10-Q (reporting date: 2019-05-05), 10-K (reporting date: 2019-02-03), 10-Q (reporting date: 2018-10-28), 10-Q (reporting date: 2018-07-29), 10-Q (reporting date: 2018-04-29).
1 Q1 2025 Calculation
Receivables turnover
= (Net revenuesQ1 2025
+ Net revenuesQ4 2024
+ Net revenuesQ3 2024
+ Net revenuesQ2 2024)
÷ Accounts receivable, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The quarterly financial data reveals notable variations in net revenues, accounts receivable, and receivables turnover over the analyzed periods, reflecting underlying operational and market dynamics.
- Net Revenues
-
Net revenues demonstrate a recurring seasonal pattern with pronounced peaks typically recorded in early calendar years (notably around January and February periods), which likely correspond to heightened consumer demand during these times.
Between April 2018 and April 2024, net revenues fluctuate markedly. Several quarters exhibit substantial increases, such as February 2019 (approximately $1.84 billion) and January 2022 (around $2.50 billion), indicating strong sales performance during these intervals.
Conversely, some quarters, particularly May and October periods, show relative declines, often hovering between $1.2 billion and $1.9 billion. This volatility suggests seasonality influences sales volumes significantly.
Overall, a long-term upward trend is discernible, with peak revenues generally increasing across years, albeit punctuated by short-term fluctuations likely driven by external market factors or company initiatives.
- Accounts Receivable, Net
-
The accounts receivable balance exhibits more modest variation relative to net revenues. Values generally range between approximately $100 million and $145 million across the quarters.
A mild upward trajectory in accounts receivable is observed over the longer term, particularly notable from mid-2019 through early 2021, coinciding with expanding net revenues during the same periods.
Seasonal fluctuations are less pronounced but still evident; for instance, receivables tend to dip following peak sales quarters, consistent with cash collection patterns.
Noteworthy is that despite considerable growth in net revenues at certain points, accounts receivable growth remains controlled, potentially indicating effective management of credit policies and collections.
- Receivables Turnover Ratio
-
The receivables turnover ratio, calculated for available quarters, generally trends upwards from approximately 47 in early 2019 to near 78 by mid-2023, suggesting an improving efficiency in converting receivables into cash.
This upward trend implies enhanced credit management or faster customer payments over time, which could positively impact liquidity and reduce credit risk.
Some fluctuations occur within this period, with slight declines or plateaus; however, the broader pattern remains one of increasing turnover velocity.
In summary, the data portrays a company experiencing seasonal sales fluctuations with a general growth trajectory in net revenues over the examined periods. Accounts receivable levels remain relatively stable in proportion to revenues, while receivables turnover improves, reflecting strengthened credit and collection practices. These trends collectively indicate an effective alignment between revenue growth and working capital management.
Payables Turnover
Apr 28, 2024 | 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 | Feb 3, 2019 | Oct 28, 2018 | Jul 29, 2018 | Apr 29, 2018 | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||
Cost of goods sold | |||||||||||||||||||||||||||||||||
Accounts payable | |||||||||||||||||||||||||||||||||
Short-term Activity Ratio | |||||||||||||||||||||||||||||||||
Payables turnover1 | |||||||||||||||||||||||||||||||||
Benchmarks | |||||||||||||||||||||||||||||||||
Payables Turnover, Competitors2 | |||||||||||||||||||||||||||||||||
Amazon.com Inc. | |||||||||||||||||||||||||||||||||
Home Depot Inc. | |||||||||||||||||||||||||||||||||
Lowe’s Cos. Inc. | |||||||||||||||||||||||||||||||||
TJX Cos. Inc. |
Based on: 10-Q (reporting date: 2024-04-28), 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-K (reporting date: 2021-01-31), 10-Q (reporting date: 2020-11-01), 10-Q (reporting date: 2020-08-02), 10-Q (reporting date: 2020-05-03), 10-K (reporting date: 2020-02-02), 10-Q (reporting date: 2019-11-03), 10-Q (reporting date: 2019-08-04), 10-Q (reporting date: 2019-05-05), 10-K (reporting date: 2019-02-03), 10-Q (reporting date: 2018-10-28), 10-Q (reporting date: 2018-07-29), 10-Q (reporting date: 2018-04-29).
1 Q1 2025 Calculation
Payables turnover
= (Cost of goods soldQ1 2025
+ Cost of goods soldQ4 2024
+ Cost of goods soldQ3 2024
+ Cost of goods soldQ2 2024)
÷ Accounts payable
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The cost of goods sold (COGS) reveals several notable trends over the observed quarters. Initially, from April 2018 to February 2019, COGS increased significantly from approximately 771 million USD to over 1.13 billion USD, indicating a rising expense on product procurement or manufacturing. This was followed by fluctuating values around the 800 million to 1.3 billion USD range up to early 2021, with a peak occurring in January 2021 at nearly 1.33 billion USD. Subsequently, the trend shows continued variability with a general upward movement reaching above 1.44 billion USD in January 2023. The latest available data point in April 2024 shows a decrease to approximately 858 million USD, marking a notable decline compared to recent peaks.
Accounts payable figures exhibit parallel fluctuations, though with less volatility compared to COGS. Starting at around 393 million USD in April 2018, accounts payable rose steadily, peaking intermittently around 720 million USD in January 2023. This is followed by a moderate decrease to approximately 502 million USD in the latest quarter. The pattern suggests that the company’s short-term obligations to suppliers have generally increased over the years, mirroring the growth in COGS but with occasional timing differences in peaks and declines.
The payables turnover ratio displays a fluctuating pattern without a clear long-term directional trend. Initially unavailable, the ratio is recorded starting from February 2019 with a value of 6.78 and later peaks near 10.28 in August 2020, implying a faster cycle of paying off suppliers at that time. Following this peak, the ratio oscillates mostly between 6.8 and 8.4, with occasional spikes such as 9.83 in April 2023. These fluctuations indicate varying efficiency or payment terms in managing accounts payable, potentially influenced by operational changes or supply chain dynamics.
Overall, the data suggests that while cost of goods sold and accounts payable have generally trended upwards over the period, reflecting growth in business scale or input costs, the payables turnover ratio has varied, indicating inconsistent payment cycles or shifts in credit terms with suppliers. The recent decline in both COGS and accounts payable in early 2024 may reflect changes in purchasing strategies, inventory levels, or market conditions impacting operational scale and supplier relations.
- Cost of Goods Sold (COGS)
- Increased from 771 million USD in April 2018 to a peak above 1.44 billion USD in early 2023, with volatility and a recent decline to 858 million USD in April 2024.
- Accounts Payable
- Rose steadily from 393 million USD in April 2018, peaking around 720 million USD in January 2023, followed by a decline to around 502 million USD in April 2024.
- Payables Turnover Ratio
- Varied between approximately 6.7 and 10.3 with irregular fluctuations, reflecting inconsistent payment cycles and supplier payment management over time.
Working Capital Turnover
Apr 28, 2024 | 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 | Feb 3, 2019 | Oct 28, 2018 | Jul 29, 2018 | Apr 29, 2018 | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||
Current assets | |||||||||||||||||||||||||||||||||
Less: Current liabilities | |||||||||||||||||||||||||||||||||
Working capital | |||||||||||||||||||||||||||||||||
Net revenues | |||||||||||||||||||||||||||||||||
Short-term Activity Ratio | |||||||||||||||||||||||||||||||||
Working capital turnover1 | |||||||||||||||||||||||||||||||||
Benchmarks | |||||||||||||||||||||||||||||||||
Working Capital Turnover, Competitors2 | |||||||||||||||||||||||||||||||||
Amazon.com Inc. | |||||||||||||||||||||||||||||||||
Home Depot Inc. | |||||||||||||||||||||||||||||||||
Lowe’s Cos. Inc. | |||||||||||||||||||||||||||||||||
TJX Cos. Inc. |
Based on: 10-Q (reporting date: 2024-04-28), 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-K (reporting date: 2021-01-31), 10-Q (reporting date: 2020-11-01), 10-Q (reporting date: 2020-08-02), 10-Q (reporting date: 2020-05-03), 10-K (reporting date: 2020-02-02), 10-Q (reporting date: 2019-11-03), 10-Q (reporting date: 2019-08-04), 10-Q (reporting date: 2019-05-05), 10-K (reporting date: 2019-02-03), 10-Q (reporting date: 2018-10-28), 10-Q (reporting date: 2018-07-29), 10-Q (reporting date: 2018-04-29).
1 Q1 2025 Calculation
Working capital turnover
= (Net revenuesQ1 2025
+ Net revenuesQ4 2024
+ Net revenuesQ3 2024
+ Net revenuesQ2 2024)
÷ Working capital
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Working Capital
- The working capital demonstrates a highly fluctuating pattern over the observed periods. Starting at approximately 640 million USD in April 2018, it declines sharply to about 146 million USD by February 2020, indicating a substantial reduction in net current assets. Following this low point, there is an upward trend towards the end of 2020 and early 2021, with values reaching above 600 million USD. However, a second downward trend occurs throughout 2022, reaching a low near 117 million USD in mid-2022. From late 2022 through early 2024, working capital recovers significantly, peaking at about 953 million USD in April 2024, marking the highest level in the timeframe.
- Net Revenues
- Net revenues show a generally increasing trend with seasonal and cyclical variations. Starting at roughly 1.2 billion USD in April 2018, revenues increase gradually, with spikes observable in February quarters such as February 2019, 2020, 2021, and 2022, often exceeding 2 billion USD. This pattern suggests strong seasonal effects, possibly related to fiscal year-end or holiday periods. Post early 2022, revenues show some volatility but maintain a relatively high level, oscillating mostly between 1.6 and 2.5 billion USD, with a slight downward tendency towards the first quarter of 2024.
- Working Capital Turnover
- Working capital turnover, a ratio indicating how efficiently working capital is used to generate sales, exhibits pronounced volatility. Starting measurements from February 2019 indicate ratios ranging from approximately 9 to over 15 initially, with an exceptional peak reaching above 40 in early 2020. This spike likely corresponds to the simultaneous drop in working capital and peak in revenues, enhancing turnover artificially. Subsequent periods show cyclical spikes and dips, with extremely high values (exceeding 40 and even approaching 70) during mid to late 2022, coinciding with the periods of very low working capital balances. Towards 2024, turnover declines to values near 8-9, reflecting the stabilization of working capital at higher absolute amounts.
- Overall Insights
- The data indicate significant seasonal and operational variability affecting both working capital and revenues. The pronounced swings in working capital and corresponding fluctuations in turnover ratios suggest potential challenges in managing liquidity and operational efficiency during certain periods. The elevated net revenue figures in the first quarters of several years imply seasonally strong sales cycles. The recovery of working capital in late 2023 and early 2024 may reflect improved asset management or inventory control. Continued monitoring of working capital relative to revenue generation appears essential for sustaining financial stability and maximizing operational performance.
Average Inventory Processing Period
Apr 28, 2024 | 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 | Feb 3, 2019 | Oct 28, 2018 | Jul 29, 2018 | Apr 29, 2018 | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||||||||||||||||||||||||||||
Inventory turnover | |||||||||||||||||||||||||||||||||
Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||||||
Average inventory processing period1 | |||||||||||||||||||||||||||||||||
Benchmarks (no. days) | |||||||||||||||||||||||||||||||||
Average Inventory Processing Period, Competitors2 | |||||||||||||||||||||||||||||||||
Amazon.com Inc. | |||||||||||||||||||||||||||||||||
Home Depot Inc. | |||||||||||||||||||||||||||||||||
Lowe’s Cos. Inc. | |||||||||||||||||||||||||||||||||
TJX Cos. Inc. |
Based on: 10-Q (reporting date: 2024-04-28), 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-K (reporting date: 2021-01-31), 10-Q (reporting date: 2020-11-01), 10-Q (reporting date: 2020-08-02), 10-Q (reporting date: 2020-05-03), 10-K (reporting date: 2020-02-02), 10-Q (reporting date: 2019-11-03), 10-Q (reporting date: 2019-08-04), 10-Q (reporting date: 2019-05-05), 10-K (reporting date: 2019-02-03), 10-Q (reporting date: 2018-10-28), 10-Q (reporting date: 2018-07-29), 10-Q (reporting date: 2018-04-29).
1 Q1 2025 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly inventory turnover ratio and average inventory processing period reveals notable trends over the observed periods.
- Inventory Turnover Ratio
- The inventory turnover ratio begins at 3.17 and exhibits a slight decline to 2.97 by February 3, 2019. Subsequently, there is a noticeable improvement, peaking at 4.12 around May 2, 2021. After this peak, the ratio shows some fluctuations, generally trending downward to 2.92 by October 30, 2022. The latter periods show a moderate recovery, with the ratio increasing and stabilizing around 3.47 by April 28, 2024. This pattern indicates periods of more efficient inventory management, followed by some easing, and a recent stabilization.
- Average Inventory Processing Period
- The average inventory processing period inversely mirrors the inventory turnover trend. Initially, the duration rises gradually from 115 days to a peak of 123 days by February 3, 2019, signaling slower inventory movement. From that point onward, the processing period shortens significantly, reaching a low of 89 days by May 2, 2021, correlating with the inventory turnover peak. Thereafter, the processing period lengthens again, reaching 125 days by October 30, 2022, before showing improvement toward 105 days in April 28, 2024. These fluctuations reflect changes in inventory management efficiency over time.
Overall, the data points to cyclical variations in inventory management efficiency, with the most efficient period occurring around mid-2021. The most recent quarters suggest a stabilization of these metrics, implying an adjustment to a consistent inventory turnover level and processing period. This trend may result from operational changes, market conditions, or strategic inventory policies impacting the turnover and processing durations over the years analyzed.
Average Receivable Collection Period
Apr 28, 2024 | 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 | Feb 3, 2019 | Oct 28, 2018 | Jul 29, 2018 | Apr 29, 2018 | |||||||||
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Selected Financial Data | |||||||||||||||||||||||||||||||||
Receivables turnover | |||||||||||||||||||||||||||||||||
Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||||||
Average receivable collection period1 | |||||||||||||||||||||||||||||||||
Benchmarks (no. days) | |||||||||||||||||||||||||||||||||
Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||||||||||||||
Home Depot Inc. | |||||||||||||||||||||||||||||||||
TJX Cos. Inc. |
Based on: 10-Q (reporting date: 2024-04-28), 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-K (reporting date: 2021-01-31), 10-Q (reporting date: 2020-11-01), 10-Q (reporting date: 2020-08-02), 10-Q (reporting date: 2020-05-03), 10-K (reporting date: 2020-02-02), 10-Q (reporting date: 2019-11-03), 10-Q (reporting date: 2019-08-04), 10-Q (reporting date: 2019-05-05), 10-K (reporting date: 2019-02-03), 10-Q (reporting date: 2018-10-28), 10-Q (reporting date: 2018-07-29), 10-Q (reporting date: 2018-04-29).
1 Q1 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Receivables Turnover
- The receivables turnover ratio exhibits a generally increasing trend over the analyzed period. Starting from a value of 52.96 in early 2019, it experienced fluctuations but maintained an upward trajectory, peaking at 78.19 by April 2023. After this peak, the ratio declined to values in the low 60s toward the end of 2023 and early 2024, settling at 66.45 most recently. This pattern suggests an improvement in the efficiency of collections over time, with a notable peak followed by a moderate decline that may indicate changing credit management or customer payment behaviors in the latest quarters.
- Average Receivable Collection Period
- The average receivable collection period remained relatively stable and low throughout the intervals where data is available. It predominantly fluctuated between 5 and 8 days, with a slight improvement trend (decreasing days) evident in the later periods. The collection period shortened from around 7 days in early 2019 to a consistent average near 5 to 6 days in the last recorded quarters. These low collection days corroborate the high receivables turnover, highlighting strong receivables management and swift conversion of credit sales into cash.
- Overall Analysis
- The combination of a rising receivables turnover ratio alongside a steady low average collection period indicates an effective and possibly improving collections process. The company appears capable of accelerating cash inflows from receivables, which is positive for liquidity management. However, the recent slight decrease in turnover ratio after the peak suggests some caution, as it could imply emerging challenges in maintaining the highest collection efficiency. Continuous monitoring will be essential to understand whether this represents a temporary fluctuation or a shift in collection dynamics.
Operating Cycle
Apr 28, 2024 | 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 | Feb 3, 2019 | Oct 28, 2018 | Jul 29, 2018 | Apr 29, 2018 | |||||||||
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Selected Financial Data | |||||||||||||||||||||||||||||||||
Average inventory processing period | |||||||||||||||||||||||||||||||||
Average receivable collection period | |||||||||||||||||||||||||||||||||
Short-term Activity Ratio | |||||||||||||||||||||||||||||||||
Operating cycle1 | |||||||||||||||||||||||||||||||||
Benchmarks | |||||||||||||||||||||||||||||||||
Operating Cycle, Competitors2 | |||||||||||||||||||||||||||||||||
Home Depot Inc. | |||||||||||||||||||||||||||||||||
TJX Cos. Inc. |
Based on: 10-Q (reporting date: 2024-04-28), 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-K (reporting date: 2021-01-31), 10-Q (reporting date: 2020-11-01), 10-Q (reporting date: 2020-08-02), 10-Q (reporting date: 2020-05-03), 10-K (reporting date: 2020-02-02), 10-Q (reporting date: 2019-11-03), 10-Q (reporting date: 2019-08-04), 10-Q (reporting date: 2019-05-05), 10-K (reporting date: 2019-02-03), 10-Q (reporting date: 2018-10-28), 10-Q (reporting date: 2018-07-29), 10-Q (reporting date: 2018-04-29).
1 Q1 2025 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= + =
2 Click competitor name to see calculations.
The data reveals insights into the company's inventory management, receivable collection efficiency, and overall operating cycle spanning from May 2018 through April 2024.
- Average Inventory Processing Period
- The inventory processing period shows moderate fluctuations over the observed timeframe. Beginning around 115 days in early 2019, it increased slightly reaching 123 days by February 2020. Subsequently, a declining trend is visible through mid to late 2020, bottoming near 89 days by May 2021. Following this, the period rose once more, peaking at 125 days by October 2022, before somewhat decreasing again, ending around 105 days in April 2024. This pattern suggests varying efficiency in inventory turnover, with periods of improved inventory management contrasted with phases of lengthened processing times.
- Average Receivable Collection Period
- The receivable collection period remains relatively stable and consistently low, fluctuating mostly between 5 and 8 days. This stability reflects consistent effectiveness in receivables management, indicating a prompt collection process throughout the periods analyzed. Minor variations do not indicate any significant deterioration or improvement but suggest maintenance of efficient credit control.
- Operating Cycle
- The operating cycle, representing the combined duration of inventory processing and receivable collection, follows a pattern roughly similar to that of the inventory processing period. It peaks around 130 days in February 2019 and again in January 2023. Periods of lower operating cycle durations occur around May 2020 and May 2021, aligning with periods where inventory processing days decreased. The operating cycle’s fluctuations underscore the impact of inventory management on overall operational efficiency, while the relatively constant receivable period provides stability.
In summary, the company's operational efficiency with respect to inventory management exhibits cyclical variability, influencing the overall operating cycle. The receivable collection remains uniformly efficient. Monitoring and aiming to reduce the inventory processing duration could further improve the total operating cycle and enhance working capital utilization.
Average Payables Payment Period
Apr 28, 2024 | 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 | Feb 3, 2019 | Oct 28, 2018 | Jul 29, 2018 | Apr 29, 2018 | |||||||||
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Selected Financial Data | |||||||||||||||||||||||||||||||||
Payables turnover | |||||||||||||||||||||||||||||||||
Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||||||
Average payables payment period1 | |||||||||||||||||||||||||||||||||
Benchmarks (no. days) | |||||||||||||||||||||||||||||||||
Average Payables Payment Period, Competitors2 | |||||||||||||||||||||||||||||||||
Amazon.com Inc. | |||||||||||||||||||||||||||||||||
Home Depot Inc. | |||||||||||||||||||||||||||||||||
Lowe’s Cos. Inc. | |||||||||||||||||||||||||||||||||
TJX Cos. Inc. |
Based on: 10-Q (reporting date: 2024-04-28), 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-K (reporting date: 2021-01-31), 10-Q (reporting date: 2020-11-01), 10-Q (reporting date: 2020-08-02), 10-Q (reporting date: 2020-05-03), 10-K (reporting date: 2020-02-02), 10-Q (reporting date: 2019-11-03), 10-Q (reporting date: 2019-08-04), 10-Q (reporting date: 2019-05-05), 10-K (reporting date: 2019-02-03), 10-Q (reporting date: 2018-10-28), 10-Q (reporting date: 2018-07-29), 10-Q (reporting date: 2018-04-29).
1 Q1 2025 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Payables Turnover Ratio
- The payables turnover ratio displays variability over the observed periods. Starting at 6.78 in May 2019, it increased to a peak of 10.28 in August 2019, indicating a faster rate of paying off suppliers during that quarter. Subsequently, the ratio declined and fluctuated between approximately 6.84 and 9.83, with no clear long-term upward or downward trend. The fluctuations suggest periodic changes in payment policies or supplier terms, with a notable peak in January 2023 at 9.83 and a lower point of 6.84 in October 2022. The most recent data point in April 2024 shows an increase to 8.41, indicating an improvement in the speed of payables turnover compared to several preceding quarters.
- Average Payables Payment Period (Number of Days)
- The average payables payment period, measured in days, trends inversely to the payables turnover ratio, as expected. It started at 54 days in May 2019, dropped sharply to 36 days by August 2019, reflecting quicker payment to suppliers during that time. After this decrease, the payment period generally oscillated between about 37 and 53 days. Notably, the period lengthened to above 50 days in several quarters, including May 2020, and again in October 2022 and January 2023, indicating slower payments during these times. A notable reduction to 37 days occurred in April 2023, signifying a temporary acceleration in payments. The latest recorded quarter, April 2024, shows an average payment period of 43 days, suggesting a moderate payment speed that is faster compared to the earliest recorded periods but slightly slower than the fastest quarters observed.
- Overall Observations
- The inverse movement between the payables turnover ratio and the average payment period reflects typical payment behavior where quicker payments lead to higher turnover ratios and vice versa. The data exhibits variability rather than a sustained trend, indicating adjustments in payment strategies or operational cycles over time. This may be influenced by factors such as cash flow management, supplier negotiations, or seasonality. The fluctuations in these metrics highlight the company's dynamic approach to managing trade payables, balancing between maintaining good supplier relationships and optimizing cash utilization.
Cash Conversion Cycle
Apr 28, 2024 | 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 | Feb 3, 2019 | Oct 28, 2018 | Jul 29, 2018 | Apr 29, 2018 | |||||||||
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Selected Financial Data | |||||||||||||||||||||||||||||||||
Average inventory processing period | |||||||||||||||||||||||||||||||||
Average receivable collection period | |||||||||||||||||||||||||||||||||
Average payables payment period | |||||||||||||||||||||||||||||||||
Short-term Activity Ratio | |||||||||||||||||||||||||||||||||
Cash conversion cycle1 | |||||||||||||||||||||||||||||||||
Benchmarks | |||||||||||||||||||||||||||||||||
Cash Conversion Cycle, Competitors2 | |||||||||||||||||||||||||||||||||
Home Depot Inc. | |||||||||||||||||||||||||||||||||
TJX Cos. Inc. |
Based on: 10-Q (reporting date: 2024-04-28), 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-K (reporting date: 2021-01-31), 10-Q (reporting date: 2020-11-01), 10-Q (reporting date: 2020-08-02), 10-Q (reporting date: 2020-05-03), 10-K (reporting date: 2020-02-02), 10-Q (reporting date: 2019-11-03), 10-Q (reporting date: 2019-08-04), 10-Q (reporting date: 2019-05-05), 10-K (reporting date: 2019-02-03), 10-Q (reporting date: 2018-10-28), 10-Q (reporting date: 2018-07-29), 10-Q (reporting date: 2018-04-29).
1 Q1 2025 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= + – =
2 Click competitor name to see calculations.
- Average inventory processing period
- The average inventory processing period displays a relatively stable pattern with some fluctuations over the observed quarters. Starting from 115 days in early 2019, the period initially increases slightly, peaking around 123 days in February 2020. Subsequently, a downward trend is observed, reaching the lowest point of 89 days by May 2021. After this decline, the inventory period begins to rise again, reaching 125 days in October 2022 before slightly decreasing to 102-105 days in early 2024. This indicates a cyclical behavior in inventory management efficiency, with periods of faster turnover followed by slower inventory processing.
- Average receivable collection period
- The average receivable collection period remains fairly consistent and low throughout the timeline, ranging mostly between 5 and 8 days. Early in the data, the period is steady at 7 days but shows a very slight trend toward improvement, with some quarters recording as low as 5 days, notably from early 2022 onward. This consistency indicates effective and stable collection practices, minimizing the time that sales remain as receivables.
- Average payables payment period
- The average payables payment period exhibits more volatility compared to receivables and inventory periods. It starts at 54 days in early 2019 but decreases to approximately 36 days by August 2020. Following this trough, the payment period oscillates between high 40s and low 50s for multiple quarters. Notable fluctuations include a sharp decline again to 37 days in April 2023, followed by a rise to the low 50s by October 2023 and a decrease to 43 days by April 2024. This variability suggests changing payment strategies or cash management policies across periods.
- Cash conversion cycle
- The cash conversion cycle generally moves within a range of about 49 to 87 days. Initially, from early 2019, it rises from 68 to 87 days, then demonstrates a decline to a recent low of 49 days in November 2020. Thereafter, a gradual upward trend is observed, reaching 77 days by October 2022, followed by a slight decline to mid-60s days in early 2024. This pattern, influenced primarily by changes in inventory and payables periods, reflects fluctuations in the overall efficiency by which the company converts investments in inventory and other resources into cash flows from sales.