Movado Group Inc (MOV)

Payables turnover

		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
Cost of revenue (ttm)	US$ in thousands	622,819	624,926	631,058	632,463	636,962	637,173	641,290	639,284	622,937	605,307	576,541	532,022	663,021	698,686	734,718	779,636	669,369	667,039	667,372	648,065
Payables	US$ in thousands	32,775	22,998	28,435	24,443	32,085	40,884	51,981	44,140	46,011	29,473	45,670	34,595	28,187	35,562	29,929	19,241	35,488	33,757	50,281	37,477
Payables turnover		19.00	27.17	22.19	25.88	19.85	15.58	12.34	14.48	13.54	20.54	12.62	15.38	23.52	19.65	24.55	40.52	18.86	19.76	13.27	17.29

January 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $622,819K ÷ $32,775K
= 19.00

Movado Group Inc's payables turnover has shown fluctuations over the past several periods. The payables turnover ratio measures how many times a company pays off its accounts payable during a specific period. A higher payables turnover ratio generally indicates that the company is managing its payables effectively and may have strong working capital management.

Looking at the trend, we see that the payables turnover ratio reached its peak at 40.52 in April 2020, indicating a significant increase in how quickly Movado Group Inc was paying off its suppliers at that time. However, the ratio has since decreased and fluctuated, with some periods showing lower ratios than others.

The recent payables turnover ratios, such as 19.00 in January 2024 and 27.17 in October 2023, suggest that Movado Group Inc has been efficient in managing its accounts payable during those periods. It is important for the company to continue monitoring this ratio to ensure effective working capital management and maintain good relationships with its suppliers.

Overall, Movado Group Inc's payables turnover ratio fluctuates, but recent ratios indicate effective management of accounts payable. Monitoring this ratio over time can provide insights into the company's liquidity and operational efficiency.