Guess? Inc. (GES)

Short-term

Turnover ratios

The activity ratios of Guess? Inc. provide insights into the efficiency of the company's operations.

1. Inventory turnover: Guess? Inc. has maintained a relatively stable inventory turnover ratio over the reported periods, ranging between 2.84 to 4.69. A higher inventory turnover indicates that the company is selling its inventory quickly and efficiently.

2. Receivables turnover: The company has reported varying receivables turnover ratios, with some periods showing no receivables turnover data provided. When receivables turnover data is available, it ranges from 7.45 to 9.77. This ratio helps assess how efficiently the company collects outstanding receivables.

3. Payables turnover: Similarly, Guess? Inc.'s payables turnover ratios have fluctuated, with some periods lacking data. The reported payables turnover ratios range from 5.27 to 8.02. A higher payables turnover ratio suggests that the company is paying its suppliers more quickly.

4. Working capital turnover: The working capital turnover ratios for Guess? Inc. have also varied, indicating changes in how effectively the company is utilizing its working capital. The ratios range from 5.99 to 10.89, with higher ratios indicating a more efficient use of working capital to generate sales.

Overall, analyzing these activity ratios provides important insights into Guess? Inc.'s operational efficiency, inventory management, collection of receivables, payment of payables, and utilization of working capital in generating sales. Investors and analysts can use these ratios to assess the company's performance and efficiency in managing its resources.

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Average number of days

Based on the provided data, we can analyze the activity ratios of Guess? Inc. as follows:

1. Days of Inventory on Hand (DOH):
- The average number of days it takes for Guess? Inc. to sell its inventory increased from 108.28 days as of January 31, 2022, to 121.25 days as of January 31, 2025.
- A decreasing trend in DOH is generally considered positive as it indicates faster inventory turnover. However, an increase in DOH could suggest slower sales, excess inventory, or operational inefficiencies.
- It is noteworthy that there was a significant decrease in DOH from January 28, 2023 (46.41 days) to February 3, 2024 (77.79 days), which could indicate a change in inventory management practices during this period.

2. Days of Sales Outstanding (DSO):
- The DSO metric provides insight into how efficiently Guess? Inc. collects its accounts receivable. However, several data points are missing, which limits the overall analysis of this ratio.
- The available data indicates fluctuations in DSO over time, with values ranging from 37.35 days to 49.00 days. A lower DSO is preferable as it signifies quicker collection of receivables.
- Further data or trend analysis would be beneficial to understand the overall effectiveness of Guess? Inc.'s credit and collection policies.

3. Number of Days of Payables:
- The data reveals the number of days Guess? Inc. takes to pay its suppliers decreased from 69.30 days as of July 30, 2022, to 45.52 days as of February 3, 2024.
- A decreasing trend in payables days could indicate more efficient payment practices or better negotiation terms with suppliers. However, excessively low payables days may strain liquidity.
- It is important to find a balance between managing payables effectively while maintaining good relationships with vendors and suppliers.

In conclusion, a comprehensive analysis of Guess? Inc.'s activity ratios suggests fluctuations in inventory turnover, receivables collection, and payables management over the analyzed period. Further exploration of trends and industry benchmarks could provide deeper insights into the company's operational efficiency and financial performance.

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Long-term

The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate sales. For Guess? Inc., the fixed asset turnover ratio varied over the reported periods. The ratio ranged from a low of 2.76 to a high of 13.51.

The highest value of 13.51 was recorded on July 30, 2022, indicating that Guess? Inc. generated $13.51 in sales for every dollar invested in fixed assets at that time. This signifies a strong performance in utilizing its fixed assets efficiently to drive revenue.

On the other hand, the lowest value of 2.76 was reported on July 31, 2023, suggesting a decrease in the company's ability to generate sales relative to its fixed asset base, possibly indicating a dip in operational efficiency during that period.

Overall, it is important for Guess? Inc. to consistently monitor and manage its fixed asset turnover ratio to ensure optimal utilization of fixed assets in generating sales and maximizing profitability.

The total asset turnover ratio reflects how well a company utilizes all its assets to generate revenue. Over the reporting periods, Guess? Inc.'s total asset turnover ratio ranged from a low of 0.99 to a high of 1.26.

The peak value of 1.26 was recorded on April 30, 2022, indicating that Guess? Inc. generated $1.26 in sales for every dollar of total assets held during that period. This suggests effective asset utilization and revenue generation.

Conversely, the lowest ratio of 0.99 was reported on July 31, 2023, signifying a decrease in the company's ability to generate sales relative to its total asset base. This may imply inefficiencies in utilizing all assets to drive revenue during that specific period.

In conclusion, maintaining a healthy total asset turnover ratio is crucial for Guess? Inc. to ensure efficient use of all assets in generating sales and ultimately enhancing overall financial performance. It is recommended for the company to analyze factors influencing fluctuations in these ratios to make informed operational and strategic decisions.