Caleres Inc (CAL)

Short-term

Turnover ratios

Analysis of Caleres Inc Activity Ratios:

1. Inventory Turnover:
Caleres Inc's inventory turnover has been relatively stable over the years, ranging from 4.34 to 5.48 times. This indicates that the company has been efficient in managing its inventory levels and converting them into sales. A higher turnover ratio suggests that the company is effectively selling its inventory.

2. Receivables Turnover:
The receivables turnover for Caleres Inc has shown some fluctuations, but the overall trend indicates an improvement in collecting receivables efficiently. A higher turnover ratio suggests that the company is collecting its receivables quickly, which is a positive sign for its cash flow.

3. Payables Turnover:
The payables turnover ratio for Caleres Inc has fluctuated over the years, but has generally been maintained at a moderate level. A lower turnover ratio may indicate that the company is taking longer to pay its supplier invoices, which could potentially strain supplier relationships.

4. Working Capital Turnover:
Caleres Inc's working capital turnover has varied significantly, with only two data points provided. The high turnover ratio in 2021 and 2020 indicates that the company generated significant revenue relative to its working capital. A lower turnover ratio would suggest that the company is not efficiently converting its working capital into revenue.

In summary, Caleres Inc's activity ratios reflect varying levels of efficiency in managing its inventory, receivables, payables, and working capital. The company's ability to maintain or improve these ratios over time can indicate effective operational management and financial health.

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Average number of days

Days of inventory on hand (DOH) for Caleres Inc have shown a declining trend over the past five years, which indicates that the company is managing its inventory more efficiently. The decrease from 84.15 days in 2022 to 74.87 days in 2024 suggests a better turnover of inventory within the organization.

Days of sales outstanding (DSO) have fluctuated over the years but have generally remained within a reasonable range. The decrease in DSO from 27.78 days in 2021 to 18.49 days in 2023 is a positive indicator that the company is collecting its accounts receivable more quickly.

The number of days of payables for Caleres Inc has varied over the years, but the trend has been relatively stable. The increase from 30.32 days in 2023 to 34.89 days in 2024 may indicate that the company is taking longer to pay its suppliers, which could have implications for its relationships with vendors.

Overall, the activity ratios suggest that Caleres Inc has been improving its inventory management and accounts receivable collection processes, although attention may be needed to ensure timely payments to suppliers to maintain good relationships within the supply chain.

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Long-term

The long-term activity ratios of Caleres Inc provide insights into the company's efficiency in utilizing its fixed assets and total assets to generate sales revenue over a period of five years. The fixed asset turnover ratio, which measures how effectively the company generates sales revenue from its fixed assets, has shown a consistent trend of improvement from 2018 to 2021, peaking in 2022 before slightly declining. This indicates that Caleres has been able to generate more revenue from its fixed assets over the years.

On the other hand, the total asset turnover ratio, which reflects the company's ability to generate sales relative to its total assets, has fluctuated over the years. There was a notable improvement in the ratio from 2020 to 2021, suggesting that the company became more efficient in utilizing its total assets to generate sales revenue. However, the ratio decreased in 2022, indicating a decrease in efficiency in generating sales relative to total assets.

Overall, while Caleres Inc has shown improvements in its fixed asset turnover ratio over the years, the total asset turnover ratio has been more volatile, showing fluctuations in efficiency in utilizing total assets to generate sales revenue. Further analysis and comparison with industry benchmarks may provide additional insights into the company's long-term asset management efficiency.