Guess? Inc. (GES)
Working capital turnover
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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenue (ttm) | US$ in thousands | 2,740,394 | 2,650,836 | 2,635,539 | 2,616,264 | 2,644,409 | 2,661,222 | 2,674,342 | 2,663,471 | 2,591,631 | 2,440,151 | 2,366,365 | 2,136,280 | 1,876,529 | 2,070,328 | 2,116,988 | 2,401,669 | 2,678,109 | 2,672,982 | 2,662,445 | 2,625,096 |
Total current assets | US$ in thousands | 1,225,470 | 1,228,490 | 1,260,070 | 1,212,680 | 1,211,700 | 1,150,530 | 1,099,000 | 1,023,380 | 1,284,090 | 1,271,250 | 1,263,890 | 1,174,180 | 1,232,520 | 1,132,920 | 1,073,940 | 1,110,400 | 1,064,240 | 997,592 | 967,507 | 917,985 |
Total current liabilities | US$ in thousands | 791,557 | 836,394 | 857,305 | 829,033 | 763,052 | 732,727 | 760,319 | 758,491 | 817,874 | 804,638 | 715,152 | 676,675 | 762,539 | 735,373 | 730,480 | 722,224 | 638,413 | 656,767 | 673,352 | 645,800 |
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 |
February 3, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,740,394K ÷ ($1,225,470K – $791,557K)
= 6.32
The working capital turnover ratio for Guess? Inc. has fluctuated over the past few periods, ranging from 3.99 to 10.06. A higher working capital turnover ratio indicates that the company is efficiently utilizing its working capital to generate sales.
In general, a higher working capital turnover ratio is considered favorable as it suggests that the company is managing its working capital effectively, resulting in faster turnover of inventory and accounts receivable. However, a very high ratio may indicate that the company is operating too lean and may face challenges in meeting short-term obligations.
Guess? Inc. experienced a peak in working capital turnover ratio in April 2022, with a ratio of 10.06, indicating a high efficiency in utilizing its working capital. However, there have been fluctuations in subsequent periods, with ratios ranging between 3.99 and 7.90. This indicates some variability in the company's working capital management efficiency.
It is important for Guess? Inc. to closely monitor its working capital turnover ratio to ensure optimal management of working capital resources and effective operations. Further analysis and benchmarking against industry standards can provide additional insights into the company's performance in this area.