Movado Group Inc (MOV)
Payables 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 |
| Payables | US$ in thousands | 32,775 | 32,085 | 46,011 | 28,187 | 35,488 |
| Payables turnover | 19.15 | 20.02 | 13.64 | 23.96 | 19.00 |
January 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $627,540K ÷ $32,775K
= 19.15
Movado Group Inc's payables turnover ratio has shown fluctuations over the past five years. The ratio was highest in January 2021 at 23.96, indicating that Movado Group converted its accounts payable into revenue almost 24 times during that year. This suggests that the company managed its payables efficiently, possibly negotiating favorable credit terms or promptly settling its obligations.
In contrast, January 2022 saw a decrease in the payables turnover ratio to 13.64, indicating a slowdown in how quickly Movado Group converted its payables into revenue. However, the ratio improved in the following years, reaching 20.02 in January 2023 and 19.15 in January 2024.
Overall, Movado Group Inc's payables turnover ratio has shown some variability, but the general trend indicates effective management of accounts payable. The company's ability to efficiently utilize its payables can have implications for liquidity and working capital management. Further analysis alongside other financial ratios and industry benchmarks would provide a more comprehensive understanding of Movado Group's overall financial performance and efficiency in managing its payables.