Caleres Inc (CAL)

Short-term

Turnover ratios

Caleres Inc's inventory turnover has fluctuated over the past few years, ranging from a low of 2.43 to a high of 4.04. This ratio indicates the number of times inventory is sold and replaced within a specific period. A higher turnover generally reflects efficient inventory management.

On the other hand, the receivables turnover for Caleres Inc has not been consistently reported, with some periods indicating no data. When reported, the turnover has ranged from 16.90 to 20.27, highlighting the company's ability to collect outstanding receivables efficiently.

The payables turnover ratio, which measures how quickly a company pays its suppliers, has shown more stability for Caleres Inc, ranging from 5.27 to 9.94. A higher turnover suggests that the company is managing its payables effectively and may indicate good relationships with suppliers.

Lastly, the working capital turnover, which measures how efficiently the company is using its working capital to generate sales, has shown an increasing trend in recent periods, with values ranging from 34.51 to 68.70. This improvement indicates that Caleres Inc is effectively utilizing its working capital to support its revenue generation activities.

Overall, the activity ratios of Caleres Inc suggest efficient management of inventory, receivables, payables, and working capital, which can positively impact the company's financial performance and operational efficiency.

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Average number of days

Caleres Inc's activity ratios provide insights into how efficiently the company manages its inventory, receivables, and payables.

1. Days of Inventory on Hand (DOH):
- The DOH measures how many days, on average, the company holds inventory before selling it.
- Caleres Inc's DOH has fluctuated over the periods provided, ranging from a low of 90.40 days to a high of 150.31 days.
- A decreasing trend in DOH indicates faster inventory turnover, which could be attributed to better inventory management or strong sales.
- On the other hand, an increasing trend suggests slower inventory turnover, which could lead to higher carrying costs or obsolete inventory issues.

2. Days of Sales Outstanding (DSO):
- DSO reflects the average number of days it takes for the company to collect its accounts receivable.
- Caleres Inc's DSO data is incomplete, making it challenging to draw a comprehensive analysis.
- However, the available data shows a range of 18.01 days to 21.60 days, indicating relatively efficient accounts receivable management, with prompt collections from customers.
- A lower DSO is favorable as it signifies quicker cash conversion and better liquidity.

3. Number of Days of Payables:
- This ratio measures the average number of days the company takes to pay its suppliers.
- Caleres Inc's payables days range from 36.73 days to 69.23 days, indicating variations in the company's payment terms with its suppliers.
- A longer payables period suggests that the company is taking longer to pay its suppliers, potentially signaling strong bargaining power or cash flow management tactics.
- Conversely, a shorter payables period might indicate tighter credit terms with suppliers or a need for better cash flow management.

Overall, monitoring these activity ratios can help assess Caleres Inc's operational efficiency, working capital management, and potential liquidity constraints.

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Long-term

The fixed asset turnover ratio of Caleres Inc has shown some fluctuations over the reporting periods. It peaked at 20.67 in July 30, 2022, which may indicate efficient utilization of fixed assets in generating revenue. However, this was followed by a decrease in the ratio to 4.28 in July 31, 2022. The ratio continued to fluctuate but generally remained within a range of 4 to 18 over subsequent periods, with a slight decline to 4.31 in October 31, 2023, and a subsequent increase to 17.41 in February 3, 2024.

On the other hand, the total asset turnover ratio of Caleres Inc has also varied during the reporting periods. The ratio ranged from 1.39 to 1.65, with the highest value observed in January 28, 2023. The ratio decreased to 1.43 in July 31, 2023, and fluctuated around this level in subsequent periods, averaging around 1.50.

Overall, while the fixed asset turnover ratio reflects the efficiency of Caleres Inc in generating sales from its fixed assets, the total asset turnover ratio indicates how well the company utilizes all its assets to generate revenue. The fluctuations in these ratios suggest changes in the company's asset management efficiency over time, which may warrant further investigation into the underlying factors driving these trends.