Movado Group Inc (MOV)
Liquidity 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 4.81 | 4.26 | 4.39 | 4.53 | 3.98 | 3.41 | 3.45 | 3.79 | 3.66 | 3.70 | 3.73 | 4.22 | 3.93 | 3.54 | 3.96 | 4.73 | 4.25 | 3.52 | 3.64 | 3.99 |
| Quick ratio | 3.35 | 2.75 | 2.70 | 2.63 | 2.51 | 2.00 | 1.97 | 2.33 | 2.49 | 2.38 | 2.21 | 2.53 | 2.55 | 2.00 | 2.11 | 2.54 | 2.42 | 1.84 | 1.80 | 2.11 |
| 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 |
Movado Group Inc's liquidity ratios have shown a general trend of improvement over the past few quarters. The current ratio has consistently been above 3, indicating a strong ability to meet short-term obligations with current assets. The most recent current ratio of 4.81 on Jan 31, 2024, signifies a very healthy liquidity position.
The quick ratio has also displayed a positive trend, staying above 2 in most periods. This indicates that Movado Group Inc has a good ability to cover immediate liabilities with its most liquid assets, excluding inventory.
The cash ratio has exhibited variability but generally remained above 1, indicating that Movado Group Inc holds sufficient cash and cash equivalents to cover its current liabilities. The cash ratio on Jan 31, 2024, stood at 2.32, demonstrating a strong cash position.
Overall, Movado Group Inc appears to have a robust liquidity position, as evidenced by consistently high current, quick, and cash ratios. It suggests that the company is well-equipped to meet its short-term financial obligations and efficiently manage its working capital.
Additional liquidity measure
| 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 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 |
The cash conversion cycle of Movado Group Inc fluctuated over the past few reporting periods. The cycle represents the average number of days it takes for the company to convert its resource inputs into cash inflows, including the time it takes to sell inventory, collect receivables, and pay suppliers.
In the most recent period as of January 31, 2024, the company's cash conversion cycle improved significantly to 130.48 days compared to the prior quarter at 164.96 days. This reduction indicates that Movado Group Inc was able to more efficiently manage its working capital and convert its operating cycle into cash during the period.
Looking at historical trends, there have been fluctuations in the cash conversion cycle over the past several periods. Movado Group Inc experienced a peak cycle of 168.32 days in the quarter ending October 31, 2022, and has since made progress in optimizing its working capital management.
Overall, Movado Group Inc's cash conversion cycle has shown variability, highlighting the company's ongoing efforts to enhance operational efficiency and optimize cash flow management. Continuous monitoring and improvement in working capital processes will be key for the company to sustain positive trends in its cash conversion cycle going forward.