Movado Group Inc (MOV)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.05 | 0.10 |
January 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $516,798K
= 0.00
The debt-to-equity ratio of Movado Group Inc has shown a consistent trend of decreasing over the past five years, reaching 0.00 as of January 31, 2024. This indicates that the company has no debt in relation to its equity, which could be a positive sign of financial stability and decreased financial risk.
The significant drop in the debt-to-equity ratio from 0.10 in 2020 to 0.00 in 2024 suggests that Movado has either paid off its debt or significantly reduced its borrowing relative to its equity. This may signal that the company's finances are improving, as lower debt levels can lead to reduced interest expenses and lower financial leverage.
A debt-to-equity ratio of 0.00 means that the company is entirely financed by equity, which can be viewed favorably by investors and creditors. However, it's important to note that a very low or zero debt-to-equity ratio can sometimes indicate underutilization of debt as a potential source of cheap capital for growth or expansion.
Overall, the decreasing trend in Movado Group Inc's debt-to-equity ratio suggests a strengthening financial position, but investors should assess the company's overall financial health and consider the potential implications of a lack of debt in its capital structure.