PVH Corp (PVH)

Short-term

Turnover ratios

PVH Corp's activity ratios provide insight into how efficiently the company manages its inventory, receivables, payables, and working capital.

1. Inventory turnover:
- PVH Corp's inventory turnover has been relatively stable over the past several quarters, averaging around 2.5 to 2.8 times per year.
- This indicates that the company is able to sell and replace its inventory at a moderate pace, with February 4, 2024, showing a slightly higher turnover compared to previous periods.

2. Receivables turnover:
- PVH Corp's receivables turnover has varied over the quarters, reaching a peak in August 2020 and showing significant fluctuations thereafter.
- The company collects its receivables at an average rate of 9 to 12 times per year, with May 1, 2022, and November 1, 2020, having notably low turnover ratios.

3. Payables turnover:
- PVH Corp's payables turnover has also fluctuated, with the company taking longer to pay its suppliers in some quarters, as seen in May 3, 2020, and November 3, 2019.
- On average, the company pays its payables around 3 to 6 times per year, with May 1, 2022, and August 4, 2019, showing relatively higher turnover ratios.

4. Working capital turnover:
- PVH Corp's working capital turnover has shown a wide range of variability, indicating shifts in the efficiency of working capital utilization.
- A higher turnover ratio suggests that the company is efficiently using its working capital to generate revenue, with July 30, 2023, displaying a particularly high turnover compared to other periods.

Overall, PVH Corp's activity ratios reflect its management of inventory, receivables, payables, and working capital, with varying levels of efficiency and turnover rates observed across different quarters.

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Average number of days

Days of inventory on hand (DOH) measures how many days a company takes to sell its average inventory. A lower DOH indicates that the company is selling its inventory more quickly. PVH Corp's inventory turnover has been fluctuating over the past several quarters, ranging from 128.49 days to 174.17 days. The company's inventory management may need improvement to reduce holding costs and potential obsolescence.

Days of sales outstanding (DSO) shows the average number of days it takes for a company to collect revenue after a sale is made. A lower DSO suggests efficient accounts receivable management. PVH Corp's DSO has varied from 22.38 days to 41.40 days, indicating some fluctuations in collecting receivables. The company may need to focus on timely collection to improve cash flow.

Number of days of payables measures how long a company takes to pay its suppliers. A longer number of days indicates that the company is taking more time to settle its payables. PVH Corp's payables days ranged from 57.95 days to 130.63 days, indicating some variability in payment cycles. Managing payables efficiently can optimize cash flow and strengthen relationships with suppliers.

Overall, PVH Corp's activity ratios show fluctuations in inventory turnover, receivables collection, and payables management. The company may benefit from improving inventory management, enhancing receivables collection processes, and optimizing payables practices to enhance operational efficiency and cash flow management.

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Long-term

PVH Corp's long-term activity ratios indicate the efficiency with which the company utilizes its assets. The fixed asset turnover ratio has remained relatively stable over the periods analyzed, ranging between 7.57 and 10.87. This suggests that PVH Corp effectively generates sales revenue in relation to its investment in fixed assets such as property, plant, and equipment.

On the other hand, the total asset turnover ratio fluctuates within a narrower range, indicating how well the company utilizes all its assets to generate sales. The total asset turnover ratio ranges from 0.54 to 0.83, with a general upward trend. This indicates that PVH Corp's overall asset utilization has improved over the periods studied, showing a positive trend in efficiency in generating sales from its total assets.

Overall, the analysis of PVH Corp's long-term activity ratios suggests that the company effectively manages its assets to generate sales, with a particularly strong performance in utilizing fixed assets efficiently and a noticeable improvement in overall asset utilization over time. It indicates a positive trend in efficiency and productivity in generating revenue from its asset base.