PVH Corp (PVH)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	156.87	167.55	162.57	131.13	128.94	130.51	137.64	141.84	177.86	170.31	156.32	152.56	156.30	163.51	173.19	178.90	171.67	166.98	133.67	130.12
Days of sales outstanding (DSO)	days	—	—	—	—	—	30.73	—	42.71	—	36.02	—	35.33	—	36.72	—	41.25	—	33.35	—	32.57
Number of days of payables	days	—	—	—	—	—	98.68	—	95.95	—	117.89	—	94.39	—	120.41	—	129.11	—	134.28	—	99.46
Cash conversion cycle	days	156.87	167.55	162.57	131.13	128.94	62.56	137.64	88.59	177.86	88.43	156.32	93.50	156.30	79.82	173.19	91.04	171.67	66.04	133.67	63.23

February 28, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 156.87 + — – —
= 156.87

The cash conversion cycle of PVH Corp, a key indicator of its efficiency in managing cash flows, has shown variability over the analyzed period. The cycle represents the time it takes for the company to convert its investments in inventory into cash inflows from sales.

Looking at the data provided, we observe fluctuations in the cash conversion cycle ranging from approximately 62.56 days to 177.86 days. The cycle experienced peaks and troughs, indicating varying efficiency in managing working capital components such as inventory, accounts receivable, and accounts payable.

PVH Corp saw its cash conversion cycle peak at 177.86 days in August 31, 2023, signifying a prolonged period of investment in inventory before realizing cash inflows from sales. Conversely, the shortest cycle of 62.56 days was recorded on February 4, 2024, indicating a more efficient management of working capital during that period.

Analyzing the trend, we see that the company has made efforts to optimize its cash conversion cycle, as evidenced by fluctuations and occasional improvements. However, fluctuations in the cycle suggest areas where further improvements in inventory management and accounts receivable collection could be beneficial to enhance the company's overall liquidity and operational efficiency.

In conclusion, PVH Corp's cash conversion cycle analysis highlights the importance of effectively managing working capital components to optimize cash flow and operational efficiency over the analyzed period.