Movado Group Inc (MOV)
Days of sales outstanding (DSO)
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.80 | 7.14 | 7.36 | 4.98 | 8.91 | |
| DSO | days | 62.97 | 51.10 | 49.58 | 73.33 | 40.96 |
January 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.80
= 62.97
Movado Group Inc's Days of Sales Outstanding (DSO) have shown fluctuations over the past five years. In Jan 31, 2024, the DSO was 62.97 days, which indicates that on average, it takes the company nearly 63 days to collect outstanding sales. This represents an increase from the prior year's DSO of 51.10 days, suggesting that Movado Group Inc may be taking longer to collect payments from its customers.
Comparing to Jan 31, 2022, the DSO was 49.58 days, the increase to 62.97 days in 2024 is significant and may warrant further investigation into the company's credit and collection policies. The DSO in Jan 31, 2021, was 73.33 days, which was noticeably higher compared to 2024, indicating an improvement in collections efficiency over the past three years.
In Jan 31, 2020, the DSO was 40.96 days, significantly lower than the current DSO of 62.97 days. This suggests that Movado Group Inc was more efficient in collecting payments in 2020 compared to the current year.
Overall, Movado Group Inc's DSO indicates variability in its collection efficiency over the past five years, with the current DSO of 62.97 days potentially signaling a slower collection process that may require management attention to improve cash flow and working capital management.