Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Williams-Sonoma Inc., short-term (operating) activity ratios
Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Williams-Sonoma Inc. inventory turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Williams-Sonoma Inc. receivables turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Williams-Sonoma Inc. payables turnover ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Williams-Sonoma Inc. working capital turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Williams-Sonoma Inc. number of days of inventory outstanding deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Williams-Sonoma Inc. number of days of payables outstanding decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Williams-Sonoma Inc. cash conversion cycle deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
Inventory Turnover
Williams-Sonoma Inc., inventory turnover calculation, comparison to benchmarks
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | Feb 3, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cost of goods sold | 4,447,051) | 4,996,684) | 4,613,973) | 4,146,920) | 3,758,916) | 3,570,580) | |
| Merchandise inventories, net | 1,246,369) | 1,456,123) | 1,246,372) | 1,006,299) | 1,100,544) | 1,124,992) | |
| Short-term Activity Ratio | |||||||
| Inventory turnover1 | 3.57 | 3.43 | 3.70 | 4.12 | 3.42 | 3.17 | |
| Benchmarks | |||||||
| Inventory Turnover, Competitors2 | |||||||
| Amazon.com Inc. | — | 9.15 | 8.40 | 8.34 | 9.80 | 8.08 | |
| Home Depot Inc. | 4.85 | 4.20 | 4.55 | 5.25 | 5.00 | 5.10 | |
| Lowe’s Cos. Inc. | 3.41 | 3.50 | 3.65 | 3.71 | 3.73 | 3.85 | |
| TJX Cos. Inc. | 6.36 | 6.21 | 5.82 | 5.66 | 6.13 | 6.08 | |
| Inventory Turnover, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 6.18 | 6.10 | 6.36 | 6.83 | 6.07 | |
| Inventory Turnover, Industry | |||||||
| Consumer Discretionary | — | 6.99 | 6.67 | 7.04 | 7.48 | 7.72 | |
Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).
1 2024 Calculation
Inventory turnover = Cost of goods sold ÷ Merchandise inventories, net
= 4,447,051 ÷ 1,246,369 = 3.57
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Williams-Sonoma Inc. inventory turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
Receivables Turnover
Williams-Sonoma Inc., receivables turnover calculation, comparison to benchmarks
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | Feb 3, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net revenues | 7,750,652) | 8,674,417) | 8,245,936) | 6,783,189) | 5,898,008) | 5,671,593) | |
| Accounts receivable, net | 122,914) | 115,685) | 131,683) | 143,728) | 111,737) | 107,102) | |
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | 63.06 | 74.98 | 62.62 | 47.19 | 52.78 | 52.96 | |
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Amazon.com Inc. | — | 16.86 | 19.32 | 23.26 | 26.09 | 22.26 | |
| Home Depot Inc. | 45.87 | 47.45 | 44.12 | 44.15 | 52.34 | 55.89 | |
| Lowe’s Cos. Inc. | — | — | — | — | — | — | |
| TJX Cos. Inc. | 102.49 | 88.70 | 93.79 | 69.69 | 108.00 | 112.54 | |
| Receivables Turnover, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 23.15 | 26.52 | 30.59 | 35.28 | 33.53 | |
| Receivables Turnover, Industry | |||||||
| Consumer Discretionary | — | 17.84 | 17.95 | 21.21 | 21.81 | 21.46 | |
Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).
1 2024 Calculation
Receivables turnover = Net revenues ÷ Accounts receivable, net
= 7,750,652 ÷ 122,914 = 63.06
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Williams-Sonoma Inc. receivables turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level. |
Payables Turnover
Williams-Sonoma Inc., payables turnover calculation, comparison to benchmarks
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | Feb 3, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cost of goods sold | 4,447,051) | 4,996,684) | 4,613,973) | 4,146,920) | 3,758,916) | 3,570,580) | |
| Accounts payable | 607,877) | 508,321) | 612,512) | 542,992) | 521,235) | 526,702) | |
| Short-term Activity Ratio | |||||||
| Payables turnover1 | 7.32 | 9.83 | 7.53 | 7.64 | 7.21 | 6.78 | |
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Amazon.com Inc. | — | 3.59 | 3.63 | 3.46 | 3.22 | 3.51 | |
| Home Depot Inc. | 10.13 | 9.14 | 7.45 | 7.52 | 9.33 | 9.16 | |
| Lowe’s Cos. Inc. | 6.61 | 6.16 | 5.65 | 5.51 | 6.42 | 5.85 | |
| TJX Cos. Inc. | 9.83 | 9.53 | 7.77 | 5.09 | 11.17 | 10.53 | |
| Payables Turnover, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 4.61 | 4.48 | 4.19 | 4.25 | 4.75 | |
| Payables Turnover, Industry | |||||||
| Consumer Discretionary | — | 5.18 | 4.80 | 4.66 | 4.74 | 5.51 | |
Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).
1 2024 Calculation
Payables turnover = Cost of goods sold ÷ Accounts payable
= 4,447,051 ÷ 607,877 = 7.32
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Williams-Sonoma Inc. payables turnover ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024. |
Working Capital Turnover
Williams-Sonoma Inc., working capital turnover calculation, comparison to benchmarks
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | Feb 3, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current assets | 2,719,797) | 2,036,080) | 2,323,894) | 2,467,080) | 1,755,635) | 1,694,343) | |
| Less: Current liabilities | 1,880,315) | 1,636,451) | 1,771,686) | 1,848,000) | 1,609,555) | 1,074,812) | |
| Working capital | 839,482) | 399,629) | 552,208) | 619,080) | 146,080) | 619,531) | |
| Net revenues | 7,750,652) | 8,674,417) | 8,245,936) | 6,783,189) | 5,898,008) | 5,671,593) | |
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | 9.23 | 21.71 | 14.93 | 10.96 | 40.38 | 9.15 | |
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Amazon.com Inc. | — | 77.32 | — | 24.33 | 60.82 | 32.92 | |
| Home Depot Inc. | 19.67 | 16.81 | 417.56 | 24.87 | 76.81 | 59.68 | |
| Lowe’s Cos. Inc. | 24.66 | 50.26 | 245.54 | 24.92 | 530.50 | — | |
| TJX Cos. Inc. | 24.50 | 23.22 | 17.40 | 6.51 | 23.97 | 13.27 | |
| Working Capital Turnover, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 42.11 | — | 21.83 | 63.17 | 38.37 | |
| Working Capital Turnover, Industry | |||||||
| Consumer Discretionary | — | 14.99 | 18.57 | 11.02 | 13.68 | 25.90 | |
Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).
1 2024 Calculation
Working capital turnover = Net revenues ÷ Working capital
= 7,750,652 ÷ 839,482 = 9.23
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Williams-Sonoma Inc. working capital turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
Average Inventory Processing Period
Williams-Sonoma Inc., average inventory processing period calculation, comparison to benchmarks
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | Feb 3, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Inventory turnover | 3.57 | 3.43 | 3.70 | 4.12 | 3.42 | 3.17 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average inventory processing period1 | 102 | 106 | 99 | 89 | 107 | 115 | |
| Benchmarks (no. days) | |||||||
| Average Inventory Processing Period, Competitors2 | |||||||
| Amazon.com Inc. | — | 40 | 43 | 44 | 37 | 45 | |
| Home Depot Inc. | 75 | 87 | 80 | 70 | 73 | 72 | |
| Lowe’s Cos. Inc. | 107 | 104 | 100 | 98 | 98 | 95 | |
| TJX Cos. Inc. | 57 | 59 | 63 | 65 | 60 | 60 | |
| Average Inventory Processing Period, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 59 | 60 | 57 | 53 | 60 | |
| Average Inventory Processing Period, Industry | |||||||
| Consumer Discretionary | — | 52 | 55 | 52 | 49 | 47 | |
Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).
1 2024 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 3.57 = 102
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Williams-Sonoma Inc. number of days of inventory outstanding deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
Average Receivable Collection Period
Williams-Sonoma Inc., average receivable collection period calculation, comparison to benchmarks
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | Feb 3, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Receivables turnover | 63.06 | 74.98 | 62.62 | 47.19 | 52.78 | 52.96 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | 6 | 5 | 6 | 8 | 7 | 7 | |
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Amazon.com Inc. | — | 22 | 19 | 16 | 14 | 16 | |
| Home Depot Inc. | 8 | 8 | 8 | 8 | 7 | 7 | |
| Lowe’s Cos. Inc. | — | — | — | — | — | — | |
| TJX Cos. Inc. | 4 | 4 | 4 | 5 | 3 | 3 | |
| Average Receivable Collection Period, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 16 | 14 | 12 | 10 | 11 | |
| Average Receivable Collection Period, Industry | |||||||
| Consumer Discretionary | — | 20 | 20 | 17 | 17 | 17 | |
Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).
1 2024 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 63.06 = 6
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. |
Operating Cycle
Williams-Sonoma Inc., operating cycle calculation, comparison to benchmarks
No. days
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | Feb 3, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 102 | 106 | 99 | 89 | 107 | 115 | |
| Average receivable collection period | 6 | 5 | 6 | 8 | 7 | 7 | |
| Short-term Activity Ratio | |||||||
| Operating cycle1 | 108 | 111 | 105 | 97 | 114 | 122 | |
| Benchmarks | |||||||
| Operating Cycle, Competitors2 | |||||||
| Amazon.com Inc. | — | 62 | 62 | 60 | 51 | 61 | |
| Home Depot Inc. | 83 | 95 | 88 | 78 | 80 | 79 | |
| Lowe’s Cos. Inc. | — | — | — | — | — | — | |
| TJX Cos. Inc. | 61 | 63 | 67 | 70 | 63 | 63 | |
| Operating Cycle, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 75 | 74 | 69 | 63 | 71 | |
| Operating Cycle, Industry | |||||||
| Consumer Discretionary | — | 72 | 75 | 69 | 66 | 64 | |
Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).
1 2024 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 102 + 6 = 108
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. |
Average Payables Payment Period
Williams-Sonoma Inc., average payables payment period calculation, comparison to benchmarks
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | Feb 3, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Payables turnover | 7.32 | 9.83 | 7.53 | 7.64 | 7.21 | 6.78 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | 50 | 37 | 48 | 48 | 51 | 54 | |
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Amazon.com Inc. | — | 102 | 101 | 105 | 113 | 104 | |
| Home Depot Inc. | 36 | 40 | 49 | 49 | 39 | 40 | |
| Lowe’s Cos. Inc. | 55 | 59 | 65 | 66 | 57 | 62 | |
| TJX Cos. Inc. | 37 | 38 | 47 | 72 | 33 | 35 | |
| Average Payables Payment Period, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 79 | 81 | 87 | 86 | 77 | |
| Average Payables Payment Period, Industry | |||||||
| Consumer Discretionary | — | 70 | 76 | 78 | 77 | 66 | |
Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).
1 2024 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 7.32 = 50
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Williams-Sonoma Inc. number of days of payables outstanding decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level. |
Cash Conversion Cycle
Williams-Sonoma Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | Feb 3, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 102 | 106 | 99 | 89 | 107 | 115 | |
| Average receivable collection period | 6 | 5 | 6 | 8 | 7 | 7 | |
| Average payables payment period | 50 | 37 | 48 | 48 | 51 | 54 | |
| Short-term Activity Ratio | |||||||
| Cash conversion cycle1 | 58 | 74 | 57 | 49 | 63 | 68 | |
| Benchmarks | |||||||
| Cash Conversion Cycle, Competitors2 | |||||||
| Amazon.com Inc. | — | -40 | -39 | -45 | -62 | -43 | |
| Home Depot Inc. | 47 | 55 | 39 | 29 | 41 | 39 | |
| Lowe’s Cos. Inc. | — | — | — | — | — | — | |
| TJX Cos. Inc. | 24 | 25 | 20 | -2 | 30 | 28 | |
| Cash Conversion Cycle, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | -4 | -7 | -18 | -23 | -6 | |
| Cash Conversion Cycle, Industry | |||||||
| Consumer Discretionary | — | 2 | -1 | -9 | -11 | -2 | |
Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).
1 2024 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 102 + 6 – 50 = 58
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Williams-Sonoma Inc. cash conversion cycle deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |