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.