Caleres Inc (CAL)
Cash conversion cycle
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 74.88 | 76.89 | 89.77 | 75.35 | 76.52 | 86.69 | 104.44 | 89.10 | 84.16 | 75.25 | 80.67 | 65.77 | 84.48 | 87.16 | 93.40 | 87.73 | 87.81 | 145.50 | 506.90 | — |
| Days of sales outstanding (DSO) | days | 20.04 | 21.59 | 18.30 | 20.16 | 18.49 | 21.46 | 17.37 | 24.57 | 20.42 | 26.96 | 21.00 | 26.11 | 27.77 | 31.71 | 24.89 | 20.10 | 20.27 | 25.35 | 41.56 | 72.41 |
| Number of days of payables | days | 34.89 | 35.57 | 47.56 | 35.25 | 30.32 | 37.35 | 54.11 | 53.55 | 46.74 | 48.77 | 49.76 | 43.32 | 48.57 | 49.06 | 45.55 | 44.60 | 37.92 | 62.23 | 287.09 | — |
| Cash conversion cycle | days | 60.03 | 62.91 | 60.51 | 60.26 | 64.69 | 70.80 | 67.70 | 60.11 | 57.83 | 53.43 | 51.92 | 48.56 | 63.69 | 69.81 | 72.75 | 63.22 | 70.17 | 108.63 | 261.37 | 72.41 |
February 3, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 74.88 + 20.04 – 34.89
= 60.03
The cash conversion cycle of Caleres Inc has shown fluctuations over the past several reporting periods. The trend indicates that the company's ability to convert its investments in inventory and accounts receivable back into cash has varied significantly.
In recent quarters, the company has been able to manage its cash conversion cycle more efficiently, as evident from the decreasing trend. For example, in the most recent period, the cash conversion cycle was 60.03 days, which was lower compared to the previous quarter. This suggests that Caleres Inc has been more effective in managing its inventory and collections, leading to a quicker cash conversion cycle.
However, despite the recent improvements, there have been instances of longer cash conversion cycles in the past, such as 261.37 days in November 2019, which may indicate challenges in managing working capital effectively during that period.
Overall, the trend in the cash conversion cycle of Caleres Inc shows the company's ongoing efforts to optimize its working capital management. Investors and stakeholders should continue to monitor this metric to assess the company's operational efficiency and financial health.
Peer comparison
Feb 3, 2024