Caleres Inc (CAL)
Cash conversion cycle
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 137.48 | 74.87 | 126.96 | 125.81 | 76.52 |
| Days of sales outstanding (DSO) | days | — | 20.04 | — | — | 18.49 |
| Number of days of payables | days | — | 34.89 | — | — | 30.32 |
| Cash conversion cycle | days | 137.48 | 60.03 | 126.96 | 125.81 | 64.69 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 137.48 + — – —
= 137.48
The cash conversion cycle of Caleres Inc has shown varying levels of efficiency over the past few years. In January 2023, the company's cash conversion cycle stood at 64.69 days, indicating that it took approximately 64.69 days to convert its investments in inventory and other resources into cash inflows. However, by January 2024, the cash conversion cycle had increased to 126.96 days, reflecting a significant lag in the company's ability to collect cash from its sales.
Subsequently, in February 2024, there was a notable improvement as the cash conversion cycle dropped to 60.03 days, suggesting a more efficient management of working capital and cash flows. Nonetheless, by January 2025, the cash conversion cycle had risen sharply to 137.48 days, signaling a potential challenge in effectively managing the company's operating cycle.
Overall, the fluctuating trend in Caleres Inc's cash conversion cycle highlights the importance of closely monitoring working capital efficiency and cash flow management to sustain optimal operational performance and liquidity.
Peer comparison
Jan 31, 2025