PVH Corp (PVH)

Cash conversion cycle

		Feb 4, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020
Days of inventory on hand (DOH)	days	134.44	168.65	128.49	154.13	130.45
Days of sales outstanding (DSO)	days	31.41	37.36	29.71	32.83	27.31
Number of days of payables	days	101.65	124.19	116.32	122.28	71.28
Cash conversion cycle	days	64.21	81.82	41.88	64.69	86.49

February 4, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 134.44 + 31.41 – 101.65
= 64.21

The cash conversion cycle of PVH Corp has shown variability over the past five years. In January 2022, the company had the shortest cash conversion cycle of 41.88 days, indicating that it was able to efficiently convert its inventory and receivables into cash during that period. This was followed by a significant increase in the cash conversion cycle in February 2020, reaching 86.49 days, suggesting potential challenges in managing its working capital effectively.

The cash conversion cycle decreased in February 2024 to 64.21 days, which could imply improvements in inventory turnover or collection of receivables. However, compared to January 2022, the cycle increased by around 22.33 days, highlighting a potential inefficiency in converting inventory and receivables into cash within the current period.

Overall, PVH Corp's cash conversion cycle has fluctuated over the years, indicating the need for continuous monitoring and management of working capital components to enhance cash flow efficiency.