Guess? Inc. (GES)

Short-term

Turnover ratios

Inventory turnover for Guess? Inc. has been increasing steadily over the past five years, indicating that the company is efficiently managing its inventory levels and turning over its inventory more frequently. This can help reduce the risk of obsolete inventory and improve cash flow.

Receivables turnover has also shown consistency and improvement over the years, suggesting that Guess? Inc. is efficient in collecting payments from its customers. A higher receivables turnover ratio indicates that the company is effectively managing its accounts receivable and converting credit sales into cash quickly.

Payables turnover has fluctuated over the years but has generally trended upwards, indicating that the company is taking longer to pay its suppliers. A higher payables turnover ratio could suggest that Guess? Inc. is taking advantage of longer payment terms from its suppliers, which can help improve cash flow management.

Working capital turnover has shown an increasing trend over the years, reflecting Guess? Inc.'s ability to generate sales from its working capital. A higher working capital turnover ratio indicates that the company is efficiently utilizing its current assets to generate revenue.

Overall, the activity ratios of Guess? Inc. suggest that the company is effectively managing its resources and operations to generate sales and improve efficiency in inventory management, accounts receivable collection, accounts payable, and working capital utilization.

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Average number of days

The Days of Inventory on Hand (DOH) for Guess? Inc. has shown improvement over the years, decreasing from 118.65 days in January 2022 to 67.68 days in February 2024. This indicates that the company is now able to sell its inventory quicker, which can lead to lower carrying costs and a healthier cash flow.

The Days of Sales Outstanding (DSO) have also improved, going down from 61.10 days in January 2021 to 41.79 days in February 2024. This highlights that Guess? Inc. is now collecting its accounts receivable faster, which is a positive sign for its liquidity and working capital management.

In terms of the Number of Days of Payables, there has been a fluctuation over the years but has decreased from 92.97 days in January 2021 to 39.60 days in February 2024. This suggests that the company is taking longer to pay its suppliers, which can help improve its cash conversion cycle and liquidity position.

Overall, the trend in these activity ratios indicates that Guess? Inc. has become more efficient in managing its inventory, collecting receivables, and paying bills, which can lead to improved financial performance and operational efficiency.

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Long-term

The long-term activity ratios for Guess? Inc. provide insight into the company's efficiency in utilizing its fixed assets and total assets to generate sales revenue over the past five years.

The fixed asset turnover ratio measures how effectively Guess? has been able to generate sales revenue relative to its investment in fixed assets. From 2020 to 2024, the fixed asset turnover ratio fluctuated, ranging from 2.97 to 11.93. The higher the ratio, the more efficiently the company is using its fixed assets to generate revenue. In 2024, the fixed asset turnover ratio decreased slightly to 11.88, indicating that Guess? generated $11.88 in sales for every dollar invested in fixed assets.

The total asset turnover ratio reflects Guess?'s ability to generate sales from its total assets, including both fixed and current assets. The total asset turnover ratio also varied over the years, with values ranging from 0.76 to 1.10. A higher total asset turnover ratio suggests that Guess? is using its assets efficiently to generate sales revenue. In 2024, the total asset turnover ratio stood at 1.06, indicating that the company generated $1.06 in sales for every dollar of total assets.

Overall, the trend in both the fixed asset turnover and total asset turnover ratios for Guess? Inc. demonstrates the company's ability to effectively leverage its assets to drive sales revenues, with fluctuations reflecting changes in asset utilization and revenue generation over the past five years.