Guess? Inc. (GES)

Working capital turnover

Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 Feb 3, 2024 Jan 31, 2024 Oct 31, 2023 Oct 28, 2023 Jul 31, 2023 Jul 29, 2023 Apr 30, 2023 Apr 29, 2023 Jan 31, 2023 Jan 28, 2023 Oct 31, 2022 Oct 29, 2022 Jul 31, 2022 Jul 30, 2022 Apr 30, 2022 Jan 31, 2022
Revenue (ttm) US$ in thousands 2,995,273 2,935,701 3,088,233 3,006,843 3,060,147 2,851,979 2,619,699 2,538,327 2,456,777 2,610,049 2,734,401 2,798,006 2,864,259 2,689,165 2,545,538 2,505,608 2,675,593 2,832,838 2,836,413 2,886,010
Total current assets US$ in thousands 1,141,510 1,303,750 1,255,860 1,207,530 1,225,470 1,225,470 1,228,490 1,228,490 1,260,070 1,260,070 1,212,680 1,212,680 1,211,700 1,211,700 1,150,530 1,150,530 1,099,000 1,099,000 1,023,380 1,284,090
Total current liabilities US$ in thousands 866,423 848,783 855,514 768,118 791,557 791,557 836,394 836,394 857,305 857,305 829,033 829,033 763,052 763,052 732,727 732,727 760,319 760,319 758,491 817,874
Working capital turnover 10.89 6.45 7.71 6.84 7.05 6.57 6.68 6.47 6.10 6.48 7.13 7.29 6.38 5.99 6.09 6.00 7.90 8.36 10.71 6.19

January 31, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,995,273K ÷ ($1,141,510K – $866,423K)
= 10.89

The working capital turnover ratio measures how effectively a company is utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is efficiently using its working capital to support its sales activities.

For Guess? Inc., the working capital turnover ratio has varied over the periods provided. The ratio ranged from a low of 5.99 to a high of 10.89. A higher ratio in January 31, 2025, indicates that Guess? Inc. was able to generate more revenue using its working capital during that period.

It's important to note that a consistently high or increasing working capital turnover ratio may suggest that the company is effectively managing its working capital and is able to quickly convert its assets into sales. On the other hand, a declining ratio may indicate inefficiencies in inventory management or collection of receivables.

Analyzing the trend of the working capital turnover ratio over time can provide insights into Guess? Inc.'s efficiency in managing its working capital and its ability to generate sales from its current assets. Further investigation into the factors influencing the changes in this ratio would be beneficial for a complete understanding of Guess? Inc.'s financial performance.