PVH Corp (PVH)

Working capital turnover

		Feb 28, 2025	Nov 30, 2024	Aug 31, 2024	May 31, 2024	Feb 29, 2024	Feb 4, 2024	Nov 30, 2023	Oct 29, 2023	Aug 31, 2023	Jul 30, 2023	May 31, 2023	Apr 30, 2023	Feb 28, 2023	Jan 29, 2023	Nov 30, 2022	Oct 30, 2022	Aug 31, 2022	Jul 31, 2022	May 31, 2022	May 1, 2022
Revenue (ttm)	US$ in thousands	8,652,900	8,771,200	9,006,000	9,294,600	9,705,600	9,422,700	9,139,800	8,934,800	8,729,800	9,011,500	9,293,200	9,416,100	9,539,000	9,182,300	8,825,600	8,667,500	8,509,400	8,807,100	9,104,800	9,314,600
Total current assets	US$ in thousands	3,487,600	3,478,200	3,414,400	2,911,900	3,259,700	3,259,700	3,347,100	3,347,100	3,414,100	3,414,100	3,353,200	3,353,200	3,580,400	3,580,400	3,654,700	3,654,700	3,584,400	3,584,400	3,365,000	3,365,000
Total current liabilities	US$ in thousands	2,741,800	2,694,700	2,760,100	1,877,400	2,771,500	2,771,500	2,845,500	2,845,500	3,123,600	3,123,600	2,396,200	2,396,200	2,767,500	2,767,500	2,705,500	2,705,500	2,656,500	2,656,500	2,428,700	2,428,700
Working capital turnover		11.60	11.19	13.76	8.98	19.88	19.30	18.22	17.81	30.05	31.02	9.71	9.84	11.73	11.30	9.30	9.13	9.17	9.49	9.72	9.95

February 28, 2025 calculation

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

Working capital turnover reflects how efficiently a company is utilizing its working capital to generate sales. Analyzing the data provided for PVH Corp's working capital turnover from May 1, 2022, to February 28, 2025, we observe fluctuations in the ratio over time.

The working capital turnover ratio for PVH Corp ranged from a low of 9.13 on October 30, 2022, to a high of 31.02 on July 30, 2023. This indicates that the company, on average, generated sales approximately 9 to 31 times per year relative to its working capital during the respective periods.

From January 29, 2023, the ratio experienced a significant increase, reaching 11.30, followed by a further rise to 11.73 on February 28, 2023. This improvement suggests that PVH Corp became more efficient in its working capital management, translating into a higher frequency of sales generated for each dollar of working capital deployed.

Subsequently, the ratio declined to 8.98 by May 31, 2024, indicating a decrease in the company's efficiency in converting its working capital into sales during that period. The ratio then increased to 13.76 on August 31, 2024, before decreasing to 11.19 on November 30, 2024, and further to 11.60 on February 28, 2025.

Overall, the trend in PVH Corp's working capital turnover shows variability over time, with fluctuations in efficiency in utilizing working capital to generate sales. It is essential for the company to maintain a balance in managing its working capital effectively to support its sales operations and overall financial performance.