Movado Group Inc (MOV)
Profitability ratios
Return on sales
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 55.17% | 57.75% | 57.21% | 53.40% | 53.66% |
| Operating profit margin | 8.15% | 16.02% | 16.04% | -28.06% | 6.15% |
| Pretax margin | 8.84% | 15.89% | 15.89% | -28.17% | 8.28% |
| Net profit margin | 6.96% | 12.58% | 12.50% | -22.01% | 6.11% |
Movado Group Inc's profitability ratios have experienced fluctuations over the past five years. The gross profit margin has varied between 53.40% and 57.75%, with a slight decline in the latest year to 55.17%. This indicates the company's ability to generate profit from its core operations.
The operating profit margin shows significant variability, ranging from -28.06% in 2021 to 16.04% in 2022. There was a notable decrease in this margin in 2024 to 8.15%, implying a lower efficiency in managing operating expenses compared to the previous year.
Similarly, the pretax margin fluctuated from -28.17% in 2021 to 15.89% in 2022 and then decreased slightly to 8.84% in 2024. This ratio reflects Movado Group's ability to control operating expenses and generate profit before taxes.
The net profit margin also showed variability, with the lowest point at -22.01% in 2021 and the highest at 12.58% in 2023. In 2024, the net profit margin decreased to 6.96%, suggesting lower profitability after accounting for all expenses and taxes.
Overall, Movado Group Inc's profitability ratios indicate a mix of strengths and weaknesses, highlighting the need for attention to cost management and operational efficiency to sustain and improve profitability in the future.
Return on investment
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.11% | 15.28% | 15.44% | -19.76% | 5.07% |
| Return on assets (ROA) | 6.07% | 12.00% | 12.03% | -15.50% | 5.04% |
| Return on total capital | 11.58% | 23.63% | 24.76% | -31.52% | 10.16% |
| Return on equity (ROE) | 9.04% | 18.62% | 19.37% | -26.22% | 8.11% |
Movado Group Inc's profitability ratios indicate fluctuating performance over the past five years. The Operating Return on Assets (Operating ROA) has shown a declining trend from 2019 to 2024, with a significant decrease in 2021 followed by a slight recovery in 2023 and 2024. This ratio measures the company's ability to generate profit from its assets solely from operations.
Return on Assets (ROA) experienced similar trends, showing a significant negative result in 2021, followed by improvements in the subsequent years. This ratio measures overall profitability in relation to the total assets of the company.
Return on Total Capital has shown a similar pattern, starting with a negative result in 2021 and increasing in the following years. This ratio reflects the company's ability to generate returns from both equity and debt capital.
Return on Equity (ROE), which measures the profitability of the shareholders' investments, also demonstrated a negative result in 2021, improving in the subsequent years but still below the levels seen in 2019.
Overall, Movado Group Inc's profitability ratios indicate a mix of challenges and improvements in recent years, emphasizing the importance of closely monitoring operational performance and capital allocation to enhance overall profitability and shareholder value.