Movado Group Inc (MOV)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.21 | 3.63 | 3.48 | 3.24 | 3.42 | 2.96 | 2.98 | 3.55 | 3.89 | 3.55 | 3.15 | 3.13 | 4.35 | 3.95 | 4.24 | 4.38 | 3.91 | 3.32 | 3.32 | 3.64 |
| 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 |
| 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 |
| Working capital turnover | 1.56 | 1.67 | 1.72 | 1.79 | 1.77 | 1.92 | 1.97 | 1.97 | 1.82 | 1.80 | 1.78 | 1.55 | 1.35 | 1.53 | 1.71 | 1.79 | 1.97 | 2.04 | 2.13 | 2.08 |
Movado Group Inc's activity ratios provide insights into the efficiency of the company's operations and management of its assets and liabilities.
1. Inventory turnover: Movado Group Inc has generally maintained a stable inventory turnover ratio over the past few periods, indicating that the company is effectively managing its inventory levels. The ratio has ranged from 2.96 to 4.35, with the latest ratio standing at 4.21. This suggests that Movado Group Inc is able to sell and replace its inventory approximately four times a year.
2. Receivables turnover: Movado Group Inc has shown variability in its receivables turnover ratio, ranging from 4.68 to 12.51 in recent periods. The higher turnover ratios imply that the company is efficient in collecting payments from its customers, with the latest ratio at 5.80. However, the fluctuations may indicate changes in the company's credit policies or the creditworthiness of its customers.
3. Payables turnover: Movado Group Inc's payables turnover ratio has varied significantly, ranging from 12.34 to 40.52. A higher payables turnover suggests that the company is paying its suppliers more frequently, which may impact its working capital management. The latest ratio of 19.00 indicates that Movado Group Inc is paying its suppliers approximately 19 times a year.
4. Working capital turnover: The working capital turnover ratio has shown some fluctuations, ranging from 1.35 to 2.13. This ratio indicates how efficiently the company is using its working capital to generate revenues. The latest ratio of 1.56 suggests that Movado Group Inc is generating $1.56 in revenues for each dollar of working capital invested.
Overall, Movado Group Inc's activity ratios reflect its ability to efficiently manage its inventory, receivables, payables, and working capital. It is essential for the company to continue monitoring these ratios to ensure optimal management of its assets and liabilities.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 86.75 | 100.44 | 104.95 | 112.67 | 106.70 | 123.16 | 122.39 | 102.77 | 93.92 | 102.94 | 116.04 | 116.61 | 84.00 | 92.38 | 86.13 | 83.26 | 93.47 | 110.08 | 109.91 | 100.28 |
| Days of sales outstanding (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 |
| Number of days of payables | days | 19.21 | 13.43 | 16.45 | 14.11 | 18.39 | 23.42 | 29.59 | 25.20 | 26.96 | 17.77 | 28.91 | 23.73 | 15.52 | 18.58 | 14.87 | 9.01 | 19.35 | 18.47 | 27.50 | 21.11 |
Movado Group Inc's activity ratios indicate the efficiency of the company in managing its inventory, accounts receivable, and accounts payable.
1. Days of Inventory on Hand (DOH):
- Movado Group Inc's DOH has shown some fluctuation over the periods analyzed, ranging from 83.26 days to 123.16 days.
- A lower DOH implies that the company is quickly converting inventory into sales, which can be positive in terms of minimizing holding costs and potential obsolescence risks.
- The company's DOH has decreased from its peak in October 2022, which may indicate improved inventory management or possibly a shift in sales patterns.
2. Days of Sales Outstanding (DSO):
- The DSO measures how long it takes for the company to collect its accounts receivable. Movado Group Inc's DSO has varied from 29.17 days to 77.95 days.
- A lower DSO suggests that the company is efficient in collecting its sales, thereby improving cash flow and reducing the risk of bad debts.
- The company's DSO has improved significantly since July 2020, which indicates better credit management or more prompt payment by customers.
3. Number of Days of Payables:
- Movado Group Inc's days of payables indicate the average number of days the company takes to pay its suppliers, ranging from 9.01 days to 29.59 days.
- A higher number of days of payables suggests that the company is effectively using trade credit to manage its working capital needs.
- The company's days of payables have been volatile but generally within a moderate range, indicating a balanced approach to managing vendor payments.
Overall, Movado Group Inc's activity ratios reflect a mix of inventory, receivables, and payables management strategies. Monitoring these ratios over time can provide insights into the company's operational efficiency and financial health.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 34.56 | 35.29 | 35.99 | 38.42 | 40.19 | 41.96 | 42.90 | 41.30 | 37.65 | 36.43 | 33.43 | 27.80 | 22.65 | 21.59 | 21.42 | 23.12 | 23.96 | 24.22 | 25.22 | 26.80 |
| Total asset turnover | 0.87 | 0.90 | 0.95 | 0.99 | 0.95 | 0.98 | 1.01 | 1.03 | 0.96 | 0.95 | 0.92 | 0.82 | 0.70 | 0.74 | 0.82 | 0.89 | 0.83 | 0.82 | 0.85 | 0.84 |
Movado Group Inc's long-term activity ratios indicate the efficiency with which the company is utilizing its assets. The fixed asset turnover ratio has generally been increasing over the past two years, which suggests that Movado is generating more sales revenue relative to its investment in fixed assets such as property, plant, and equipment. This may indicate improved operational efficiency and effective utilization of long-term assets.
However, it is important to note that the total asset turnover ratio has fluctuated over the same period, showing a mixed trend. While the ratio has shown some improvement in certain quarters, it has also experienced declines in others. This implies that Movado's ability to generate overall sales from all its assets has varied over time, potentially indicating fluctuations in the company's asset management and operational effectiveness.
Overall, Movado Group Inc's fixed asset turnover ratio trending upward is a positive sign, indicating increased efficiency in utilizing fixed assets. However, the fluctuating total asset turnover ratio suggests variability in the company's overall asset utilization, which may warrant further analysis to identify the factors contributing to these changes.