Movado Group Inc (MOV)
Working capital turnover
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 671,382 | 751,398 | 732,513 | 506,591 | 698,579 |
| Total current assets | US$ in thousands | 543,878 | 567,189 | 553,884 | 501,651 | 464,554 |
| Total current liabilities | US$ in thousands | 113,075 | 142,420 | 151,466 | 127,671 | 109,300 |
| Working capital turnover | 1.56 | 1.77 | 1.82 | 1.35 | 1.97 |
January 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $671,382K ÷ ($543,878K – $113,075K)
= 1.56
Movado Group Inc's working capital turnover has fluctuated over the past five years, ranging from a low of 1.35 in January 2021 to a high of 1.97 in January 2020. A higher working capital turnover ratio indicates that the company is more efficient in managing its working capital to generate sales revenue. Movado's working capital turnover has decreased in recent years, suggesting a potential decrease in sales revenue relative to the amount of working capital invested. Further analysis of the company's working capital management practices and sales strategies may be warranted to improve efficiency and profitability.