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Cash Conversion Cycle for Burlington Stores Inc

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BURL: Burlington Stores Inc

Burlington Stores, Inc. operates as a retailer of branded merchandise in the United States and Puerto Rico. The company offers fashion-focused merchandise, including women’s ready-to-wear apparel, men...

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Analysis

Fiscal Years
Trailing Twelve Months
Fiscal Halfs
Fiscal Quarters
Daily
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The following section summarizes insights on Burlington Stores Inc's Cash Conversion Cycle:

Jan 2017Jan 2019Jan 2021Jan 2023Jan 20255 days15 days25 days

Performance Summary
  • Burlington Stores's latest twelve months cash conversion cycle is 13 days
  • Burlington Stores's cash conversion cycle for fiscal years ending January 2021 to 2025 averaged 6 days.
  • Burlington Stores's operated at median cash conversion cycle of 8 days from fiscal years ending January 2021 to 2025.
  • Looking back at the last 5 years, Burlington Stores's cash conversion cycle peaked in February 2024 at 14 days.
  • Burlington Stores's cash conversion cycle hit its 5-year low in January 2022 of -4 days.
  • Burlington Stores's cash conversion cycle decreased in 2021 (0 days, -105.0%), 2022 (-4 days, +745.0%), and 2025 (13 days, -8.4%) and increased in 2023 (8 days, -322.5%) and 2024 (14 days, +69.7%).

How does Burlington Stores's Cash Conversion Cycle benchmark against competitors?

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We've identified the following companies as similar to Burlington Stores Inc because they operate in a related industry or sector. We also considered size, growth, and various financial metrics to narrow down the list to the ones listed below.

Metric Usage: Cash Conversion Cycle

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cash_conversion_cycle
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FY, LTM
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Free
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To view the full list of supported financial metrics please see Complete Metrics Listing.

Similar Metrics

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Metrics similar to Cash Conversion Cycle in the efficiency category include:

  • Return on Capital - Measures the profitability and efficiency of a company's capital investments
  • Effective Tax Rate - A ratio that measures the GAAP tax rate applicable to the earnings after all expenses have been deducted by the business.
  • Avg EBIT Margin (5y) - Five-year quarterly average EBIT margin.
  • Gross Profit / Total Assets - A ratio that measures the amount of gross profit the company generates as a percentage of total assets.
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Cash Conversion Cycle

A metric that compares the amount of days it takes a company to sell inventory and collect receivables relative to the amount of days afforded to pay ...

Definition of Cash Conversion Cycle

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Cash Conversion Cycle is defined as:

(+) Days Inventory Outstanding
(+) Days Sales Outstanding
(-) Days Payables Outstanding
(=) Cash Conversion Cycle

Cash Conversion Cycle for Burlington Stores is calculated as follows:

(+) Days Inventory Outstanding [ 71 days ]
(+) Days Sales Outstanding [ 3 days ]
(-) Days Payables Outstanding [ 60 days ]
(=) Cash Conversion Cycle [ 13 days ]

The tables below summarises the trend in Burlington Stores’s inventory turnover over the last five years:

Fiscal Year Days Inventory Outstanding Days Sales Outstanding Days Payables Outstanding Cash Conversion Cycle
2021-01-30 78 days 5 days 83 days 0 days
2022-01-29 59 days 2 days 65 days −4 days
2023-01-28 78 days 3 days 72 days 8 days
2024-02-03 74 days 3 days 62 days 14 days
2025-02-01 71 days 3 days 60 days 13 days

Cash Conversion Cycle is a metric that compares the amount of days it takes a company to sell inventory and collect receivables relative to the amount of days afforded to pay bills. It attempts to measure the time between the outflow and inflow of cash in the sales cycle.

For example, many companies buy inventory on credit as well as sell products on credit. These actions would increase the company’s Accounts Payable liability and Accounts Receivable asset, respectively. However, cash has not yet been involved in these transactions until the company actually pays its Accounts Payables or collects its Accounts Receivables. The Cash Conversion Cycle attempts to measure the time between these cash outflows and inflows.

A negative figure suggests a company is able to receive payments for product sales before having to pay suppliers. This is good for Net Working Capital and free cash flow.

Read more about days inventory outstanding, days sales outstanding, and days payables outstanding


Click the link below to download a spreadsheet with an example Cash Conversion Cycle calculation for Burlington Stores Inc below:

Sector Benchmark Analysis

Sector
Industry Group
Industry
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-453 days-103 days247 days780 days0100200300

The chart above depicts the distribution of cash conversion cycle for companies operating in the Consumer Discretionary sector in the Developed economic region. Over 2,460 companies were considered in this analysis, and 2,370 had meaningful values. The average cash conversion cycle of companies in the sector is 78 days with a standard deviation of 133 days.

Burlington Stores Inc's Cash Conversion Cycle of 13 days ranks in the 31.4% percentile for the sector. The following table provides additional summary stats:

Cash Conversion Cycle In The Consumer Discretionary Sector
Economic Risk RegionDeveloped
Total Constituents2,467
Included Constituents2,370
Min-478 days
Max780 days
Median56 days
Mean78 days
Standard Deviation133 days

You can find companies with similar cash conversion cycle using this stock screener.

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