Guess? Inc. (GES)

Working capital turnover

Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020
Revenue US$ in thousands 2,749,310 2,640,650 2,591,630 1,876,530 2,678,110
Total current assets US$ in thousands 1,225,470 1,211,700 1,284,090 1,232,520 1,064,240
Total current liabilities US$ in thousands 791,557 763,052 817,874 762,539 638,413
Working capital turnover 6.34 5.89 5.56 3.99 6.29

February 3, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,749,310K ÷ ($1,225,470K – $791,557K)
= 6.34

The working capital turnover for Guess? Inc. has shown a generally positive trend over the past five years, indicating an improvement in its efficiency in utilizing working capital to generate sales revenue.

The ratio has increased from 3.99 in 2021 to 6.34 in 2024, which suggests that the company has been able to convert its working capital into sales at a faster rate. This can be a positive sign of effective management of inventory, receivables, and payables.

A higher working capital turnover ratio indicates that the company is operating more efficiently and effectively utilizing its current assets to support its revenue generation. It implies that Guess? Inc. is able to generate more sales revenue relative to the amount of working capital invested.

Overall, the increasing trend in working capital turnover ratios for Guess? Inc. reflects positively on the company's ability to manage its working capital effectively and generate sales efficiently over the years.