Caleres Inc (CAL)

Liquidity ratios

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
Current ratio 1.10 1.08 1.09 1.05 1.06 1.06 0.99 0.99 0.96 0.96 0.93 0.93 0.91 0.91 0.89 0.89 0.89 0.89 0.87 0.82
Quick ratio 0.04 0.04 0.06 0.04 0.24 0.03 0.04 0.24 0.05 0.20 0.04 0.22 0.04 0.20 0.03 0.20 0.04 0.16 0.03 0.03
Cash ratio 0.04 0.04 0.06 0.04 0.03 0.03 0.04 0.04 0.05 0.05 0.04 0.04 0.04 0.04 0.03 0.03 0.04 0.04 0.03 0.03

The liquidity ratios for Caleres Inc indicate the company's ability to meet its short-term obligations and manage its cash flow effectively.

The current ratio has shown an improving trend over the analyzed periods, reaching a healthy level of 1.10 as of January 31, 2025. This reflects that the company has more than enough current assets to cover its current liabilities, indicating a strong liquidity position.

On the other hand, the quick ratio, which excludes inventory from current assets, has also shown an increasing trend, reaching 0.04 as of January 31, 2025. While this ratio is relatively low, it still suggests that Caleres Inc may face some challenges in meeting its short-term obligations without relying on inventory liquidation.

The cash ratio, which specifically looks at the company's ability to cover its current liabilities with cash and cash equivalents, remained stable around 0.04 over the analyzed periods. This ratio indicates that Caleres Inc maintains a moderate level of cash reserves to meet its immediate financial obligations.

Overall, based on the liquidity ratios, Caleres Inc appears to have a sufficient level of liquidity to fulfill its short-term obligations, with an improving current ratio and a moderate cash ratio. However, the low quick ratio raises some concerns about the company's ability to quickly cover its liabilities without relying on inventory.

Additional liquidity measure

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
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

The cash conversion cycle of Caleres Inc, which represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales, has shown fluctuations over the reported periods.

The cash conversion cycle started at a level of 99.94 days on January 31, 2022, and peaked at 150.31 days on July 31, 2022, indicating a significant delay in the conversion process during that period. This prolonged cycle may have been caused by issues such as slow inventory turnover or extended collection periods.

However, the company managed to improve the efficiency of its cash conversion cycle over the subsequent quarters, with a notable reduction to 81.40 days by October 29, 2022. This likely indicates better management of inventory and receivables, leading to a faster generation of cash from sales.

The cycle continued to fluctuate in the following quarters, showing mixed results in terms of efficiency. It hit the lowest point of 67.62 days on February 3, 2024, suggesting a more streamlined process, but then increased to 137.11 days by January 31, 2025.

Overall, managing and optimizing the cash conversion cycle is crucial for Caleres Inc to ensure efficient use of resources, timely collection of receivables, and effective inventory management. Continuous monitoring and improvements in this cycle can contribute to the company's financial health and operational efficiency.