Caleres Inc (CAL)
Cash conversion cycle
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 137.11 | 118.14 | 135.00 | 105.44 | 90.40 | 104.14 | 94.28 | 97.05 | 120.16 | 118.17 | 98.89 | 94.40 | 92.30 | 92.69 | 103.73 | 106.06 | 150.31 | 133.62 | 124.89 | 99.94 |
| Days of sales outstanding (DSO) | days | — | — | — | — | 19.34 | — | — | 21.60 | — | 19.21 | — | 20.46 | — | 18.10 | — | 21.03 | — | 18.01 | — | — |
| Number of days of payables | days | — | — | — | — | 42.12 | — | — | 44.89 | — | 62.60 | — | 44.16 | — | 36.73 | — | 45.69 | — | 69.23 | — | — |
| Cash conversion cycle | days | 137.11 | 118.14 | 135.00 | 105.44 | 67.62 | 104.14 | 94.28 | 73.75 | 120.16 | 74.78 | 98.89 | 70.69 | 92.30 | 74.06 | 103.73 | 81.40 | 150.31 | 82.40 | 124.89 | 99.94 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 137.11 + — – —
= 137.11
The cash conversion cycle is a vital metric for assessing a company's efficiency in managing its working capital. The cash conversion cycle of Caleres Inc has varied over the past few quarters.
Analyzing the data provided, we observe fluctuations in Caleres Inc's cash conversion cycle over the analyzed period, ranging from a low of 67.62 days to a high of 150.31 days. Generally, a shorter cash conversion cycle is preferred as it indicates that the company is taking less time to convert its investments in inventory and other resources into cash from sales.
Caleres Inc's cash conversion cycle showed an improving trend in the recent quarters, with a notable decrease from 150.31 days in July 31, 2022, to 73.75 days in October 28, 2023. A shorter cash conversion cycle suggests that Caleres Inc is effectively managing its working capital and efficiently turning inventory into cash.
However, there were instances of the cash conversion cycle increasing, such as in July 31, 2022, and July 31, 2023, where the cycle reached relatively higher levels of 150.31 days and 120.16 days, respectively. These higher values indicate that Caleres Inc might be facing challenges in managing its working capital efficiently during these periods.
It is essential for Caleres Inc to continue monitoring and managing its cash conversion cycle to ensure optimal working capital management, timely collections on sales, and efficient inventory turnover, which ultimately impacts the company's overall liquidity and financial health.
Peer comparison
Jan 31, 2025