Guess? Inc. (GES)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 121.25 | 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 |
| Days of sales outstanding (DSO) | days | — | — | — | — | 37.54 | — | — | 49.00 | — | 44.52 | — | 37.35 | — | 46.41 | — | 46.52 | — | 38.87 | — | — |
| Number of days of payables | days | — | — | — | — | 45.52 | — | — | 56.00 | — | 57.27 | — | 47.61 | — | 52.05 | — | 62.46 | — | 69.30 | — | — |
| Cash conversion cycle | days | 121.25 | 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 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 121.25 + — – —
= 121.25
Guess? Inc.'s cash conversion cycle is a key metric that measures the time it takes for the company to convert its investments in inventory and accounts receivable into cash flows from sales. The trend analysis of the cash conversion cycle for Guess? Inc. from January 2022 to January 2025 shows fluctuations in the company's efficiency in managing its working capital.
The cash conversion cycle for Guess? Inc. ranged from a high of 128.56 days in October 2024 to a low of 69.82 days in February 2024. This variability indicates possible challenges in managing inventory, collecting receivables, and paying creditors efficiently. An increasing cash conversion cycle suggests that Guess? Inc. is taking longer to convert its resources into cash, potentially leading to liquidity issues. Conversely, a decreasing cycle indicates improved cash flow management.
Overall, the fluctuations in Guess? Inc.'s cash conversion cycle highlight the importance of closely monitoring working capital dynamics to ensure efficient management of cash flows, inventory levels, and accounts receivable. By analyzing and addressing the factors influencing the cash conversion cycle, Guess? Inc. can optimize its working capital management and strengthen its financial position.