Movado Group Inc (MOV)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 262,059 | 200,965 | 218,909 | 198,257 | 251,584 | 186,665 | 203,109 | 225,256 | 277,128 | 201,814 | 199,721 | 186,950 | 223,811 | 163,218 | 170,195 | 187,830 | 185,872 | 116,025 | 134,890 | 150,712 |
| Short-term investments | US$ in thousands | 401 | 363 | 383 | 372 | 419 | 415 | 393 | 404 | — | — | — | — | — | — | — | — | 340 | 333 | 343 | 330 |
| 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 |
| Cash ratio | 2.32 | 1.59 | 1.80 | 1.71 | 1.77 | 1.13 | 1.27 | 1.63 | 1.83 | 1.39 | 1.48 | 1.63 | 1.75 | 1.22 | 1.56 | 2.01 | 1.70 | 0.85 | 1.07 | 1.35 |
January 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($262,059K
+ $401K)
÷ $113,075K
= 2.32
The cash ratio of Movado Group Inc has shown some fluctuations over the past few years. As of January 31, 2024, the cash ratio stands at 2.32, indicating that the company has $2.32 in cash and cash equivalents for every $1 of current liabilities. This represents a significant improvement compared to the prior quarter's ratio of 1.59.
Looking at the trend over the past few quarters, Movado's cash ratio has been relatively stable, with occasional fluctuations. The ratio has generally remained above 1, suggesting that the company has had sufficient cash reserves to cover its short-term liabilities.
It is important to note that a higher cash ratio indicates a stronger ability to cover current liabilities with cash on hand. Movado's increasing cash ratio trend suggests improved liquidity and financial health, which could provide the company with more flexibility in managing its short-term obligations and pursuing growth opportunities. However, it is essential for the company to maintain an appropriate balance between cash reserves and productive investments to optimize its financial position.