Movado Group Inc (MOV)

Cash conversion cycle

		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
Cash conversion cycle	days	130.48	164.96	144.41	151.41	139.40	168.32	145.11	123.67	116.50	159.39	141.73	158.44	141.87	146.70	110.85	103.42	114.96	161.77	130.42	123.95

January 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 86.75 + 62.94 – 19.21
= 130.48

The cash conversion cycle of Movado Group Inc has shown fluctuations over the past few quarters. The cycle measures the time it takes for a company to convert its investments in inventory into cash inflows from sales, considering the accounts receivable collection period and the accounts payable payment period.

Analyzing the data provided, we can see that Movado Group Inc's cash conversion cycle has ranged from a low of 103.42 days to a high of 168.32 days over the past two years. In general, a lower cash conversion cycle is better as it indicates that the company is able to more quickly convert its investments into cash.

In the most recent quarter ending January 31, 2024, the cash conversion cycle was 130.48 days, showing an improvement from the previous quarter of 164.96 days. This suggests that the company may have effectively managed its inventory, accounts receivable, and accounts payable to enhance its cash conversion efficiency.

Overall, Movado Group Inc should continue to focus on optimizing its cash conversion cycle to improve its liquidity position and operational efficiency. This may involve more effective inventory management, timely collection of receivables, and efficient payment of payables to shorten the overall cash conversion cycle period.