PVH Corp (PVH)

Working capital turnover

		Feb 28, 2025	Feb 29, 2024	Feb 4, 2024	Feb 28, 2023	Jan 29, 2023
Revenue	US$ in thousands	8,652,900	9,217,700	9,217,700	9,024,200	9,024,200
Total current assets	US$ in thousands	3,487,600	3,259,700	3,259,700	3,580,400	3,580,400
Total current liabilities	US$ in thousands	2,741,800	2,771,500	2,771,500	2,767,500	2,767,500
Working capital turnover		11.60	18.88	18.88	11.10	11.10

February 28, 2025 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $8,652,900K ÷ ($3,487,600K – $2,741,800K)
= 11.60

The working capital turnover for PVH Corp has shown significant variation over the periods analyzed. In January 2023 and February 2023, the company had a working capital turnover of 11.10 times, indicating that PVH Corp generated revenue 11.10 times relative to its working capital during that period.

A notable increase was observed in February 2024, with a working capital turnover of 18.88 times, showcasing a more efficient utilization of working capital in generating revenue. This high turnover implies that PVH Corp effectively leveraged its current assets and liabilities to drive sales during that specific period.

However, this high turnover was not sustained, as in February 2025, the working capital turnover decreased to 11.60 times. This reduction suggests a potential decrease in the efficiency of PVH Corp's working capital management in converting investments in working capital into revenue within the analyzed timeframe.

Overall, PVH Corp experienced fluctuations in its working capital turnover, indicating varying levels of efficiency in managing its working capital to generate revenue during the different periods under review. It is essential for the company to consistently monitor and optimize its working capital turnover to maintain a healthy balance between liquidity and operational efficiency.