Movado Group Inc (MOV)

Quick 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 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
Receivables US$ in thousands 115,826 146,658 108,809 106,094 105,190 143,544 110,388 96,165 99,499 143,472 98,312 102,889 101,781 103,506 60,128 49,765 78,388 136,272 93,699 85,715
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
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

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 few quarters, ranging from 1.80 to 3.35. A quick ratio above 1 indicates that the company has enough liquid assets to cover its short-term obligations without relying on inventory sales. Movado's quick ratio has generally been healthy and above 2, indicating strong liquidity position and ability to meet its short-term liabilities comfortably.

There was a significant improvement in the quick ratio in Jan 2024, reaching 3.35, which suggests an increase in liquid assets or a decrease in current liabilities compared to the previous quarter. However, it is important to note that a very high quick ratio may also indicate an inefficient use of assets, as excess liquidity may not be fully utilized to generate returns.

Overall, Movado Group Inc has maintained a solid quick ratio above 2 for most quarters, demonstrating a strong ability to cover its short-term obligations with liquid assets. Investors and creditors often view a consistently high quick ratio as a positive indicator of the company's financial health and ability to weather short-term financial challenges.