Movado Group Inc (MOV)

Working capital 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
Revenue (ttm) US$ in thousands 671,700 686,683 710,386 732,812 751,558 764,009 770,368 761,365 733,031 705,538 657,180 572,745 506,197 518,273 554,396 622,722 700,509 708,902 712,327 698,667
Total current assets US$ in thousands 543,878 538,445 534,372 525,390 567,189 563,879 550,123 524,982 553,884 536,151 504,466 483,454 501,651 471,593 433,553 442,476 464,554 484,198 461,655 447,106
Total current liabilities US$ in thousands 113,075 126,389 121,693 116,013 142,420 165,595 159,618 138,389 151,466 145,035 135,105 114,550 127,671 133,352 109,409 93,615 109,300 137,431 126,897 111,982
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

January 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $671,700K ÷ ($543,878K – $113,075K)
= 1.56

Movado Group Inc's working capital turnover has fluctuated over the past few quarters, with a general downward trend from October 2022 to April 2023, followed by an uptick in the most recent quarter ending January 2024. This ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.

A working capital turnover ratio of less than 1 implies the company is inefficient in managing its working capital, whereas a ratio greater than 1 indicates efficiency. Movado's ratios have consistently been above 1, suggesting that the company is efficiently utilizing its working capital to generate sales.

The increasing trend from January 2022 to October 2022 signifies improved efficiency in working capital management, peaking at 1.97 in both periods. However, there was a decline in efficiency from October 2022 to April 2023, with the ratio dropping to 1.55 before steadily increasing to 1.56 in January 2024.

Overall, Movado Group Inc has shown the ability to efficiently use its working capital to drive sales, although there have been fluctuations in efficiency over the past few quarters. Monitoring this ratio can provide insights into the company's operational efficiency and effectiveness in managing working capital.