Shoe Carnival Inc (SCVL)

Short-term

Turnover ratios

Inventory turnover:
- Shoe Carnival Inc's inventory turnover has been declining over the past five years, indicating that the company is taking longer to sell its inventory.
- This might suggest potential inefficiencies in inventory management or a slowdown in sales compared to previous years.

Receivables turnover:
- The receivables turnover for Shoe Carnival Inc has shown significant fluctuations over the years, with a sharp increase in 2024 compared to the previous year.
- A very high receivables turnover ratio may indicate that the company is efficient in collecting payments from its customers, potentially indicating strong credit control measures.

Payables turnover:
- The payables turnover ratio for Shoe Carnival Inc has been fairly consistent over the years, reflecting stable payment practices with suppliers.
- A higher payables turnover ratio could imply that the company is paying its creditors more frequently, while a lower ratio might indicate longer debt payment cycles.

Working capital turnover:
- The working capital turnover ratio has shown a decreasing trend over the years for Shoe Carnival Inc, suggesting a decline in efficiency in utilizing working capital to generate sales.
- This may indicate that the company is not effectively managing its working capital to support its sales and operations.

Overall, the activity ratios illustrate various aspects of Shoe Carnival Inc's operations, including inventory management, accounts receivable collection, payment practices with suppliers, and the use of working capital. Monitoring these ratios over time can help assess the company's operational efficiency and effectiveness in managing its resources.

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Average number of days

Shoe Carnival Inc's activity ratios indicate the efficiency of its operations and management of working capital. The Days of Inventory on Hand (DOH) has shown some fluctuation over the past five years, with the current ratio at 167.60 days. This suggests that the company takes approximately 167.60 days to sell its inventory, which is higher than in previous years, indicating a slower inventory turnover rate.

On the other hand, the Days of Sales Outstanding (DSO) has decreased to 0.80 days, reflecting an improvement in the company's ability to collect payments from customers promptly. This implies efficient accounts receivable management in converting sales into cash.

The Number of Days of Payables has also shown some variability, with the current ratio at 28.19 days. This indicates that Shoe Carnival Inc takes approximately 28.19 days to pay its suppliers, which is lower than in the previous year, suggesting a potential improvement in managing payables.

Overall, while the company has effectively reduced its DSO and continues to manage its payables efficiently, the increase in DOH may imply challenges in inventory management and could potentially impact liquidity if not addressed. Continued monitoring and potential adjustments in inventory management practices may be needed to enhance overall operational efficiency.

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Long-term

The long-term activity ratios of Shoe Carnival Inc show the efficiency with which the company utilizes its fixed assets and total assets to generate sales. The fixed asset turnover ratio has decreased over the past five years, indicating that the company is generating fewer sales relative to its investment in fixed assets. This trend suggests that the company may not be efficiently utilizing its fixed assets to drive revenue.

Conversely, the total asset turnover ratio has fluctuated over the same period, showing a slight downward trend. Although the total asset turnover ratio is relatively stable, it indicates that the company generates a lower level of sales in relation to its total assets compared to previous years. This may suggest that Shoe Carnival Inc could potentially optimize its asset utilization to improve revenue generation efficiency.

Overall, the analysis of Shoe Carnival Inc's long-term activity ratios highlights the importance of continuously monitoring and assessing asset efficiency to ensure optimal performance and profitability.