Guess? Inc. (GES)
Activity ratios
Short-term
Turnover 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.39 | 4.42 | 4.45 | 4.64 | 4.78 | 3.75 | 3.60 | 3.45 | 3.08 | 2.83 | 3.13 | 3.12 | 3.03 | 3.33 | 3.26 | 3.91 | 4.23 | 3.25 | 3.49 | 3.51 |
| Receivables turnover | 8.71 | 7.78 | 8.28 | 9.14 | 7.73 | 8.33 | 8.87 | 9.02 | 7.88 | 7.59 | 7.89 | 6.97 | 5.97 | 6.89 | 8.59 | 10.03 | 8.18 | 8.90 | 9.09 | 10.48 |
| Payables turnover | 9.22 | 8.49 | 7.99 | 8.94 | 8.43 | 6.68 | 5.65 | 5.80 | 4.37 | 4.35 | 4.71 | 4.89 | 3.93 | 4.47 | 5.27 | 7.14 | 7.14 | 6.66 | 6.85 | 8.11 |
| Working capital turnover | 6.32 | 6.76 | 6.54 | 6.82 | 5.89 | 6.37 | 7.90 | 10.06 | 5.56 | 5.23 | 4.31 | 4.29 | 3.99 | 5.21 | 6.16 | 6.19 | 6.29 | 7.84 | 9.05 | 9.64 |
The activity ratios of Guess? Inc. provide insight into how efficiently the company is managing its current assets and liabilities.
1. Inventory turnover: This ratio indicates how many times a company sells and replaces its inventory during a specific period. Guess? Inc. has shown a fluctuating trend in inventory turnover, with the highest turnover seen in February 2024 at 5.39. This indicates that the company is able to efficiently manage its inventory and turn it into sales.
2. Receivables turnover: This ratio reflects how quickly a company collects on its credit sales. Guess? Inc. has maintained a relatively stable receivables turnover, with fluctuations but a generally consistent performance. A higher turnover ratio suggests that the company is efficient in collecting its accounts receivable.
3. Payables turnover: This ratio measures how quickly a company pays its suppliers. Guess? Inc. has shown varying payables turnover ratios over time, indicating differences in the company's payment practices. A higher turnover ratio suggests that the company is taking longer to pay its suppliers, which can be beneficial for cash flow management.
4. Working capital turnover: This ratio shows how efficiently a company utilizes its working capital to generate sales. Guess? Inc. has displayed fluctuating trends in working capital turnover, with the highest ratio seen in October 2022 at 10.06. A higher turnover ratio indicates that the company is effectively using its working capital to drive revenue.
Overall, analyzing these activity ratios provides valuable insights into Guess? Inc.'s operational efficiency and effectiveness in managing its resources to drive business performance.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 67.68 | 82.65 | 82.04 | 78.65 | 76.38 | 97.26 | 101.44 | 105.68 | 118.65 | 129.05 | 116.78 | 117.11 | 120.43 | 109.47 | 111.94 | 93.41 | 86.32 | 112.30 | 104.67 | 104.06 |
| Days of sales outstanding (DSO) | days | 41.92 | 46.92 | 44.09 | 39.94 | 47.20 | 43.80 | 41.17 | 40.49 | 46.32 | 48.06 | 46.26 | 52.33 | 61.10 | 52.97 | 42.50 | 36.40 | 44.61 | 40.99 | 40.17 | 34.83 |
| Number of days of payables | days | 39.60 | 42.98 | 45.67 | 40.85 | 43.27 | 54.67 | 64.58 | 62.91 | 83.62 | 83.92 | 77.51 | 74.61 | 92.97 | 81.61 | 69.32 | 51.15 | 51.11 | 54.78 | 53.28 | 44.98 |
Guess? Inc.'s activity ratios provide insights into the efficiency of the company's management of its inventory, receivables, and payables.
1. Days of inventory on hand (DOH) measures how long it takes for the company to sell its inventory. A lower number indicates that the company is selling inventory quickly. Guess? Inc.'s DOH fluctuated over the period, ranging from 67.68 days to 129.05 days. The increase in DOH from 67.68 days to 129.05 days suggests that the company may be facing challenges in managing its inventory efficiently.
2. Days of sales outstanding (DSO) indicates the average number of days it takes for the company to collect its receivables. A lower DSO is favorable as it signifies faster collection of sales. Guess? Inc.'s DSO fluctuated over time, ranging from 36.40 days to 61.10 days. The decreasing trend from 61.10 days to 36.40 days indicates that the company improved its receivables collection efficiency.
3. Number of days of payables measures the average number of days the company takes to pay its suppliers. A higher number suggests that the company is taking longer to pay its bills. Guess? Inc.'s number of days of payables ranged from 39.60 days to 92.97 days. The fluctuation in this ratio indicates variability in the company's payment terms with its suppliers.
In conclusion, Guess? Inc. needs to focus on improving its management of inventory to reduce the days of inventory on hand and continue the positive trend in reducing days of sales outstanding. Additionally, the company should monitor its payment terms to suppliers to maintain a healthy balance in managing its working capital effectively.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 11.84 | 12.16 | 11.89 | 11.79 | 11.95 | 12.57 | 12.75 | 12.55 | 2.97 | 12.60 | 12.63 | 10.11 | 8.68 | 9.37 | 8.82 | 9.82 | 9.30 | 8.97 | 8.79 | 8.52 |
| Total asset turnover | 1.06 | 1.07 | 1.06 | 1.07 | 1.09 | 1.15 | 1.15 | 1.18 | 1.01 | 0.95 | 0.96 | 0.90 | 0.76 | 0.87 | 0.92 | 1.02 | 1.10 | 1.12 | 1.11 | 1.10 |
The fixed asset turnover ratio for Guess? Inc. over the past 20 reported periods ranged between approximately 2.97 and 12.75. This ratio measures the efficiency of the company in generating sales revenue from its investments in fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more efficiently to generate sales.
On the other hand, the total asset turnover ratio fluctuated between about 0.76 and 1.18 during the same period. This ratio reflects the company's ability to generate sales revenue from all its assets, including both fixed and current assets. A higher total asset turnover ratio indicates that the company is effectively utilizing all its assets to generate sales.
Overall, the fluctuation in both the fixed asset turnover and total asset turnover ratios over the reporting periods suggests varying levels of asset utilization efficiency by Guess? Inc. It is important for the company to consistently monitor and improve these ratios to ensure optimal utilization of its assets for revenue generation.