Movado Group Inc (MOV)
Quick ratio
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 262,059 | 251,584 | 277,128 | 223,811 | 185,872 |
| Short-term investments | US$ in thousands | 401 | 419 | 413 | 346 | 340 |
| Receivables | US$ in thousands | 115,826 | 105,190 | 99,499 | 101,781 | 78,388 |
| Total current liabilities | US$ in thousands | 113,075 | 142,420 | 151,466 | 127,671 | 109,300 |
| Quick ratio | 3.35 | 2.51 | 2.49 | 2.55 | 2.42 |
January 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($262,059K
+ $401K
+ $115,826K)
÷ $113,075K
= 3.35
The quick ratio of Movado Group Inc has shown a fluctuating trend over the past five years. As of January 31, 2024, the quick ratio stands at 3.35, indicating a significant improvement compared to the previous year. This suggests that the company has a strong ability to meet its short-term obligations using its most liquid assets.
It is noteworthy that the quick ratio has generally been above 2, indicating a healthy liquidity position for Movado Group Inc. This suggests that the company has a sufficient level of liquid assets, such as cash and marketable securities, to cover its current liabilities. However, it is important to note that a very high quick ratio could also imply that the company is not efficiently utilizing its current assets to generate revenue.
Overall, Movado Group Inc's quick ratio reflects a generally stable and positive liquidity position, which is essential for meeting short-term financial obligations and weathering economic uncertainties.