PVH Corp (PVH)

Working capital turnover

Feb 4, 2024 Oct 29, 2023 Jul 30, 2023 Apr 30, 2023 Jan 29, 2023 Oct 30, 2022 Jul 31, 2022 May 1, 2022 Jan 30, 2022 Oct 31, 2021 Aug 1, 2021 May 2, 2021 Jan 31, 2021 Nov 1, 2020 Aug 2, 2020 May 3, 2020 Feb 2, 2020 Nov 3, 2019 Aug 4, 2019 May 5, 2019
Revenue (ttm) US$ in thousands 9,217,700 9,216,500 9,134,400 9,059,400 9,024,200 8,965,200 9,016,900 9,198,100 9,154,700 8,814,800 8,600,400 7,867,900 7,132,600 7,643,600 8,113,200 8,896,700 9,909,000 9,792,200 9,729,000 9,698,500
Total current assets US$ in thousands 3,259,700 3,347,100 3,414,100 3,353,200 3,580,400 3,654,700 3,584,400 3,365,000 3,653,700 3,858,900 3,754,300 3,483,000 3,943,700 3,967,900 3,846,800 3,188,300 3,394,200 3,582,100 3,398,600 3,253,400
Total current liabilities US$ in thousands 2,771,500 2,845,500 3,123,600 2,396,200 2,767,500 2,705,500 2,656,500 2,428,700 2,787,500 2,659,300 2,531,400 2,388,500 2,582,400 2,567,900 2,526,100 2,321,600 2,361,100 2,552,700 2,427,700 2,206,600
Working capital turnover 18.88 18.37 31.44 9.47 11.10 9.45 9.72 9.82 10.57 7.35 7.03 7.19 5.24 5.46 6.14 10.27 9.59 9.51 10.02 9.26

February 4, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $9,217,700K ÷ ($3,259,700K – $2,771,500K)
= 18.88

The working capital turnover for PVH Corp has fluctuated over the past few quarters. The ratio measures how efficiently the company is using its working capital to generate sales revenue. A higher working capital turnover indicates that the company is effectively utilizing its current assets to support sales operations.

Looking at the trend over the quarters, we see that the working capital turnover has ranged from a low of 5.24 to a high of 31.44. The highest value of 31.44 in July 30, 2023, suggests a significant improvement in efficiency as the company was able to generate $31.44 in sales for every dollar of working capital invested.

However, this peak was followed by a sharp decline to 9.47 in April 30, 2023, indicating a potential inefficiency in utilizing working capital during that period. Subsequently, the ratio has shown some volatility, with fluctuations in the range of 7 to 18.88 in the recent quarters. Overall, the trend suggests that PVH Corp has been able to maintain a relatively high level of working capital turnover, which is generally favorable for the company's operational efficiency.

It is important for PVH Corp to continue monitoring and managing its working capital effectively to ensure optimal utilization of resources and support sustainable growth in sales revenue.