Profitability Overview for Boot Barn (BOOT) Investors

Boot Barn, a small-cap Apparel Retail company, moved -1.3 during today's morning session. The company's business may appear to be profitable at first glance, since its most recent operating margins stand at 17.4%. But there is more to the story.

Investors should review the company's profitability over several years, and also its ability to convert these profits into hard cash. Some profitable companies struggle in this respect. For example, an unexpected increase in capital expenditures, or an inability to collect payments from customers can quickly empty a company's coffers despite healthy profits on paper. Let's compare Boot Barn's operating profits and cash flows side-by-side to see this process firsthand.

Date Reported Total Revenue ($ MM) Operating Expenses ($ MM) Operating Margins (%) YoY Growth (%)
2022-03-31 1,488 317 17.36 79.71
2021-03-31 893 209 9.66 10.91
2020-03-31 846 203 8.71 5.19
2019-03-31 777 187 8.28 n/a
Date Reported Cash Flow from Operations ($ MM) Capital expenditures ($ MM) Free Cash Flow ($ MM) YoY Growth (%)
2022-03-31 89 -60 28 -77.71
2021-03-31 156 -28 127 1173.4
2020-03-31 25 -37 -12 -133.24
2019-03-31 63 -28 36 n/a

Despite the profitability being reported on the earnings side, the company's cash flows are frequently negative. We also note that Boot Barn's free cash flows have a significantly higher volatility than its margins, with coefficients of variability of 131.0% and 38.9% respectively.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.