Movado Group Inc (MOV)
Debt-to-capital ratio
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | 21,230 | 51,910 |
| Total stockholders’ equity | US$ in thousands | 516,798 | 507,606 | 472,808 | 425,264 | 526,537 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.05 | 0.09 |
January 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $516,798K)
= 0.00
The debt-to-capital ratio for Movado Group Inc has been consistently low over the past five years. As of January 31, 2024, the company had no debt relative to its capital, indicating a strong financial position with little reliance on debt financing. This is consistent with the trend observed in the previous years, where the debt-to-capital ratio remained at 0.00.
The gradual decline in the debt-to-capital ratio over the years, from 0.09 in January 2020 to 0.00 in January 2024, suggests that Movado Group Inc has been reducing its debt levels or increasing its capital base. This trend reflects a conservative approach to financial management, minimizing financial risk and enhancing the company's stability.
Overall, a consistently low debt-to-capital ratio indicates that Movado Group Inc is maintaining a healthy balance between debt and equity in its capital structure, which can enhance its financial flexibility and strengthen its ability to weather economic uncertainties.