Movado Group Inc (MOV)
Inventory turnover
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 627,540 | 642,248 | 627,365 | 675,222 | 674,356 |
| Inventory | US$ in thousands | 148,031 | 186,203 | 160,283 | 152,580 | 171,406 |
| Inventory turnover | 4.24 | 3.45 | 3.91 | 4.43 | 3.93 |
January 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $627,540K ÷ $148,031K
= 4.24
Movado Group Inc's inventory turnover has fluctuated over the past five years. The inventory turnover ratio measures how efficiently the company manages its inventory by showing how many times it sells and replaces its inventory within a given period.
In 2024, the inventory turnover ratio was 4.24, indicating that Movado Group Inc turned over its inventory approximately 4.24 times during the year. This represents an improvement compared to the previous year's ratio of 3.45.
Looking back over the five-year period, Movado Group Inc's inventory turnover has shown variations. The highest turnover was observed in 2021 with a ratio of 4.43, while the lowest turnover was in 2023 with a ratio of 3.45.
A higher inventory turnover ratio generally indicates that a company is efficiently managing its inventory by quickly selling products and restocking, which can lead to increased profitability. However, it is essential to consider the industry norms and the company's specific circumstances when interpreting the inventory turnover ratio.
Movado Group Inc's consistent focus on improving its inventory turnover ratio demonstrates efforts to enhance operational efficiency and optimize inventory management processes.