Movado Group Inc (MOV)
Activity ratios
Short-term
Turnover ratios
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 4.24 | 3.45 | 3.91 | 4.43 | 3.93 |
| Receivables turnover | 5.80 | 7.14 | 7.36 | 4.98 | 8.91 |
| Payables turnover | 19.15 | 20.02 | 13.64 | 23.96 | 19.00 |
| Working capital turnover | 1.56 | 1.77 | 1.82 | 1.35 | 1.97 |
Activity ratios provide insight into the efficiency of Movado Group Inc's operations in managing its assets and liabilities.
1. Inventory turnover: Movado's inventory turnover has improved over the past five years, indicating that the company is selling its inventory more frequently. This could be a result of effective inventory management or strong consumer demand for Movado's products.
2. Receivables turnover: Movado's receivables turnover has fluctuated over the years, but overall shows that the company is collecting its receivables at a relatively steady pace. A higher turnover ratio suggests that Movado is efficient in collecting payments from customers.
3. Payables turnover: Movado's payables turnover has varied but generally indicates that the company is taking longer to pay its suppliers. A lower turnover ratio might signify that Movado is managing its short-term liabilities strategically, possibly to maintain cash flow or negotiate favorable credit terms.
4. Working capital turnover: The working capital turnover ratio has decreased over time, indicating a decline in its effectiveness in generating revenue from its working capital. Movado may need to review its working capital management practices to improve efficiency in utilizing its current assets for revenue generation.
Overall, Movado Group Inc's activity ratios suggest a mixed picture of operational efficiency, with areas of improvement and potential challenges that may require further analysis and strategy adjustment.
Average number of days
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 86.10 | 105.82 | 93.25 | 82.48 | 92.77 |
| Days of sales outstanding (DSO) | days | 62.97 | 51.10 | 49.58 | 73.33 | 40.96 |
| Number of days of payables | days | 19.06 | 18.23 | 26.77 | 15.24 | 19.21 |
Activity ratios provide insights into how efficiently a company manages its assets and liabilities. Let's analyze the activity ratios of Movado Group Inc over the five-year period:
1. Days of Inventory on Hand (DOH):
- The DOH decreased from 105.82 days in 2023 to 86.10 days in 2024, indicating that Movado Group Inc improved its inventory management efficiency.
- The decreasing trend in DOH suggests that the company is selling its inventory more quickly, which may lead to lower storage and holding costs.
2. Days of Sales Outstanding (DSO):
- The DSO fluctuated over the years, from a low of 40.96 days in 2020 to a high of 73.33 days in 2021, and then decreased to 62.97 days in 2024.
- A decreasing DSO indicates that Movado Group Inc is collecting its accounts receivable faster, enhancing its cash flow and liquidity.
3. Number of Days of Payables:
- Movado Group Inc managed its payables efficiently with relatively stable trends over the years, ranging from 15.24 days in 2021 to 26.77 days in 2022.
- A lower number of days of payables suggests that the company is paying its suppliers more quickly, which could impact its working capital management.
Overall, the improvements in inventory management efficiency and accounts receivable collection indicate that Movado Group Inc has been effective in optimizing its working capital and enhancing its operational performance over the years. Going forward, the company may focus on maintaining this efficiency to support its financial health and sustainable growth.
Long-term
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 34.54 | 40.18 | 37.62 | 22.67 | 23.89 |
| Total asset turnover | 0.87 | 0.95 | 0.96 | 0.70 | 0.82 |
Movado Group Inc's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, have shown fluctuations over the past five years. The fixed asset turnover ratio measures how efficiently the company is utilizing its fixed assets to generate sales. Movado's fixed asset turnover ratio has ranged from 22.67 to 40.18 over the period.
The increasing trend from 22.67 in 2021 to 40.18 in 2023 indicates that Movado was able to generate more sales revenue relative to its investment in fixed assets during these years. However, in 2024, the fixed asset turnover ratio decreased to 34.54, suggesting a slight dip in efficiency in utilizing fixed assets to generate sales compared to the previous year.
On the other hand, the total asset turnover ratio, which assesses how effectively the company is using all its assets to generate sales, has fluctuated between 0.70 and 0.96 over the five-year period. Movado's total asset turnover ratio has generally shown an upward trend from 0.70 in 2021 to 0.95 in 2023, indicating improved efficiency in utilizing all assets to generate sales.
Overall, Movado Group Inc's long-term activity ratios suggest that the company has been improving its efficiency in generating sales revenue relative to its investments in fixed and total assets over the past five years, although there have been some fluctuations in performance from year to year.