Guess? Inc. (GES)
Cash conversion cycle
| 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 | Jan 29, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 128.56 | 110.76 | 104.65 | 77.79 | 93.93 | 106.46 | 107.70 | 107.59 | 102.88 | 92.84 | 91.68 | 88.22 | 91.87 | 110.08 | 111.12 | 112.45 | 108.85 | 113.58 | 108.28 | 115.33 |
| Days of sales outstanding (DSO) | days | — | — | — | 37.54 | — | — | 49.00 | — | 44.52 | — | 37.35 | — | 46.41 | — | 46.52 | — | 38.87 | — | — | 44.22 |
| Number of days of payables | days | — | — | — | 45.52 | — | — | 56.00 | — | 57.27 | — | 47.61 | — | 52.05 | — | 62.46 | — | 69.30 | — | — | 81.27 |
| Cash conversion cycle | days | 128.56 | 110.76 | 104.65 | 69.82 | 93.93 | 106.46 | 100.70 | 107.59 | 90.14 | 92.84 | 81.42 | 88.22 | 86.23 | 110.08 | 95.18 | 112.45 | 78.42 | 113.58 | 108.28 | 78.27 |
October 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 128.56 + — – —
= 128.56
The cash conversion cycle of Guess? Inc. fluctuated over the period provided in the data. The cycle is a measure of the time it takes for a company to convert its investments in inventory into cash flows from sales.
The cash conversion cycle started at 78.27 days on January 29, 2022, and increased to 108.28 days by January 31, 2022. It continued to rise to 113.58 days by April 30, 2022. However, by July 30, 2022, the cycle decreased to 78.42 days, only to increase again to 112.45 days by July 31, 2022.
The cycle then fluctuated between 95.18 days on October 29, 2022, and 110.08 days on October 31, 2022, showing some stability. However, by January 28, 2023, the cycle decreased to 86.23 days, only to rise slightly to 88.22 days by January 31, 2023.
Guess? Inc. managed to reduce the cash conversion cycle to 81.42 days by April 29, 2023, before it increased again to 92.84 days by April 30, 2023. The cycle fluctuated further between 90.14 days on July 29, 2023, and 107.59 days on July 31, 2023.
The cycle then ranged between 100.70 days on October 28, 2023, and 106.46 days on October 31, 2023, showing relative stability. By January 31, 2024, the cash conversion cycle decreased to 93.93 days, followed by a significant drop to 69.82 days by February 3, 2024.
However, the cycle increased again to 104.65 days by April 30, 2024, and continued to rise to 110.76 days by July 31, 2024. It peaked at 128.56 days on October 31, 2024.
Overall, the cash conversion cycle of Guess? Inc. experienced fluctuations during the period, indicating changes in inventory management, accounts receivable collection, and accounts payable payment practices. These fluctuations may have implications for the company's working capital management efficiency and liquidity position.