Movado Group Inc (MOV)
Solvency ratios
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.03 | 0.06 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.05 | 0.09 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.05 | 0.10 |
| Financial leverage ratio | 1.49 | 1.55 | 1.61 | 1.69 | 1.61 |
Movado Group Inc's solvency ratios reflect a consistent and strong financial position over the past five years. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all been consistently at 0.00 during the last three years, implying that the company has had no debt relative to its assets, capital, or equity during this period. This indicates a low level of financial leverage and a robust solvency position.
The financial leverage ratio has shown a slight decrease from 1.69 in 2021 to 1.49 in 2024, suggesting that the company has been effective in decreasing its reliance on debt to finance its operations. This indicates a positive trend towards lower leverage, which can reduce financial risk and enhance stability.
Overall, Movado Group Inc's solvency ratios demonstrate a healthy financial structure with little to no debt burden in recent years, indicating a strong ability to meet its financial obligations and withstand economic downturns.
Coverage ratios
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 120.46 | 231.52 | 170.15 | -71.85 | 63.18 |
The interest coverage ratio for Movado Group Inc has shown fluctuating trends over the past five years. As of January 31, 2024, the interest coverage ratio stood at a healthy 120.46, indicating that the company's earnings before interest and taxes (EBIT) are more than sufficient to cover its interest expense. This suggests that Movado Group Inc has a comfortable cushion to meet its interest obligations.
Comparing this to the previous years, the interest coverage ratio was notably higher in January 31, 2023 and January 31, 2022 at 231.52 and 170.15 respectively, indicating even stronger ability to cover interest payments during those periods. However, there was a significant decline in the interest coverage ratio to -71.85 as of January 31, 2021, which could signify potential financial distress or a temporary setback in profitability.
Prior to that, in January 31, 2020, the interest coverage ratio was 63.18, showing a moderate ability to cover interest expenses. Overall, the movement in the interest coverage ratio for Movado Group Inc reflects variations in the company's profitability and its capacity to manage its debt obligations.