Movado Group Inc (MOV)
Days of sales outstanding (DSO)
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 5.80 | 4.68 | 6.53 | 6.91 | 7.14 | 5.32 | 6.98 | 7.92 | 7.37 | 4.92 | 6.68 | 5.57 | 4.97 | 5.01 | 9.22 | 12.51 | 8.94 | 5.20 | 7.60 | 8.15 | |
| DSO | days | 62.94 | 77.95 | 55.91 | 52.84 | 51.09 | 68.58 | 52.30 | 46.10 | 49.54 | 74.22 | 54.60 | 65.57 | 73.39 | 72.90 | 39.59 | 29.17 | 40.84 | 70.16 | 48.01 | 44.78 |
January 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.80
= 62.94
Days Sales Outstanding (DSO) is a key financial ratio that measures how long it takes for a company to collect its accounts receivable. A lower DSO indicates that the company is collecting payments more quickly, which is generally a positive indicator of efficient cash flow management.
Analyzing the DSO trend of Movado Group Inc over multiple periods reveals fluctuations in the collection efficiency of the company. The DSO has ranged from as low as 29.17 days to as high as 77.95 days over the past few quarters.
The trend in the DSO for Movado Group Inc shows fluctuations, with some quarters exhibiting shorter collection periods while others show longer collection periods. This inconsistency in collection efficiency could be influenced by factors such as changes in credit policies, customer payment behavior, or seasonality in sales.
Overall, Movado Group Inc should focus on monitoring and managing its accounts receivable more effectively to maintain a consistent and optimal DSO. Identifying and addressing the root causes of high DSO periods can help the company improve cash flow and overall financial performance.