PVH Corp (PVH)

PVH Corp's liquidity ratios have shown some fluctuations over the past several periods.

1. Current Ratio: PVH Corp's current ratio has ranged from 1.09 to 1.55. The current ratio indicates the company's ability to cover its short-term liabilities with its current assets. PVH Corp's current ratio has generally been above 1, suggesting that the company has had sufficient current assets to cover its current liabilities. The current ratio peaked at 1.55 in January 2021, indicating a strong liquidity position.

2. Quick Ratio: PVH Corp's quick ratio has varied from 0.40 to 0.89. The quick ratio is a more stringent measure of liquidity as it excludes inventory from current assets. PVH Corp's quick ratio has fluctuated but generally remained below 1, indicating that the company may have had difficulty meeting its short-term obligations without relying on inventory. The quick ratio hit its highest level at 0.89 in January 2021, potentially signaling an improved ability to meet short-term obligations without relying on inventory.

3. Cash Ratio: PVH Corp's cash ratio has fluctuated between 0.12 and 0.64. The cash ratio is the most conservative liquidity measure as it only considers cash and cash equivalents in relation to current liabilities. PVH Corp's cash ratio has shown significant variability, with a notable peak at 0.64 in January 2021, suggesting a strong cash position relative to current liabilities during that period.

Overall, while PVH Corp's liquidity ratios have fluctuated over the given periods, the company generally maintained a reasonable liquidity position, as evidenced by current ratios consistently above 1. However, the company's quick and cash ratios indicate potential volatility in its ability to quickly cover short-term obligations with liquid assets, especially as shown by the fluctuations in these ratios over time.

---

Additional liquidity measure

The cash conversion cycle of PVH Corp, calculated as the sum of days inventory outstanding, plus days sales outstanding, minus days payable outstanding, has shown fluctuations over the past several quarters.

On average, PVH Corp took around 78 days to convert its investments in inventory and accounts receivable into cash. This indicates that the company has typically taken over two months to convert its operating assets into cash flow.

There was a notable increase in the cash conversion cycle in the first quarter of 2021, reaching 117.33 days, which suggests a delay in the company's ability to convert its resources into cash during that period. This rise was mitigated in the subsequent quarters, but the cycle remained above average levels.

The most recent cash conversion cycle was 64.21 days, reflecting an improvement compared to previous quarters. This indicates that the company has been able to manage its operating cycle more efficiently in recent times.

Overall, PVH Corp should focus on optimizing its inventory management, accounts receivable collection, and payment practices to reduce the cash conversion cycle, increase liquidity, and improve overall financial performance.