Caleres Inc (CAL)

Liquidity ratios

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
Current ratio 1.06 0.99 0.96 0.93 0.91 0.89 0.89 0.87 0.82 0.81 0.82 0.87 0.86 0.91 0.91 0.94 1.04 1.01 0.97 0.97
Quick ratio 0.24 0.24 0.20 0.22 0.20 0.20 0.16 0.21 0.18 0.25 0.20 0.31 0.28 0.33 0.31 0.31 0.24 0.23 0.19 0.20
Cash ratio 0.03 0.04 0.05 0.04 0.04 0.03 0.04 0.03 0.03 0.07 0.06 0.11 0.10 0.13 0.15 0.17 0.05 0.06 0.04 0.04

Caleres Inc's liquidity ratios have shown fluctuations over the past few quarters. The current ratio, a measure of the firm's ability to cover short-term liabilities with current assets, has ranged from 0.81 to 1.06. This indicates that the company may have had some challenges meeting its short-term obligations in some periods, although the ratio improved towards the most recent quarter.

The quick ratio, which provides a more stringent assessment of liquidity by excluding inventory from current assets, has varied between 0.16 and 0.33. This suggests that Caleres Inc may have had difficulty meeting its short-term obligations without relying on selling its inventory quickly in some periods, though there was an improvement in the most recent quarter.

The cash ratio, reflecting the firm's ability to cover its current liabilities with its cash and cash equivalents, has fluctuated between 0.03 and 0.17. This indicates that the company has had varying levels of cash to cover its short-term obligations, with a notable increase in the cash ratio in some recent quarters.

Overall, while Caleres Inc's liquidity ratios have shown some improvement in the most recent quarters, the company should continue to monitor and manage its liquidity position carefully to ensure it can meet its short-term commitments effectively.

Additional liquidity measure

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
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

The cash conversion cycle of Caleres Inc has shown fluctuations over the past several periods. The trend indicates that the company took 60.03 days from the procurement of raw materials to receiving cash from the sale of the final product on February 3, 2024. Similarly, for the preceding period on October 28, 2023, the company's cash conversion cycle was recorded at 62.91 days. The cycle has ranged from 53.43 days on October 30, 2021, to 261.37 days on August 3, 2019, showing significant variability.

A lower cash conversion cycle suggests that the company is efficient in managing its cash flows, inventory, and receivables, resulting in quicker conversion of resources into cash. On the other hand, a longer cycle may indicate inefficiencies in managing working capital components, leading to longer cash tie-up in the operating cycle.

It is essential for Caleres Inc to analyze the factors contributing to these fluctuations in its cash conversion cycle to identify and address any operational inefficiencies. By improving inventory management, optimizing accounts receivable collection, and streamlining accounts payable processes, the company can work towards reducing its cash conversion cycle and enhancing its overall financial performance.