Shoe Carnival Inc (SCVL)
Working capital turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,175,880 | 1,262,240 | 1,330,390 | 976,765 | 1,036,550 |
| Total current assets | US$ in thousands | 481,338 | 469,723 | 442,032 | 355,305 | 329,647 |
| Total current liabilities | US$ in thousands | 127,875 | 157,285 | 153,708 | 130,901 | 122,506 |
| Working capital turnover | 3.33 | 4.04 | 4.61 | 4.35 | 5.00 |
February 3, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,175,880K ÷ ($481,338K – $127,875K)
= 3.33
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales. In the case of Shoe Carnival Inc, the trend in the working capital turnover ratio over the past five years indicates a slight decrease in efficiency.
The working capital turnover ratio has declined from 5.00 in 2020 to 3.33 in 2024. This may suggest that Shoe Carnival Inc is taking longer to convert its working capital into sales in the most recent period. A lower working capital turnover ratio could indicate inefficiencies in managing inventory, collecting receivables, or paying payables.
Although the working capital turnover ratio has fluctuated over the years, the decreasing trend raises some concerns about the company's ability to effectively utilize its working capital resources to support its sales activities. Further analysis of specific components of working capital, such as inventory management and accounts receivable collection, may help identify areas for improvement and enhance overall operational efficiency.
Peer comparison
Feb 3, 2024