Shoe Carnival Inc (SCVL)
Cash conversion cycle
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 167.60 | 179.45 | 129.54 | 122.19 | 130.70 |
| Days of sales outstanding (DSO) | days | 0.80 | 0.88 | 3.88 | 2.65 | 0.96 |
| Number of days of payables | days | 28.19 | 36.24 | 31.38 | 30.23 | 30.56 |
| Cash conversion cycle | days | 140.21 | 144.08 | 102.04 | 94.61 | 101.10 |
February 3, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 167.60 + 0.80 – 28.19
= 140.21
Shoe Carnival Inc's cash conversion cycle has shown fluctuating trends over the past five years. The cycle measures the time it takes for the company to convert its investments in inventory into cash flow from sales.
In the most recent fiscal year, ending on Feb 3, 2024, Shoe Carnival's cash conversion cycle was 140.21 days, indicating a slight improvement from the previous year's 144.08 days. This suggests that the company may have become more efficient in managing its working capital in the latest period.
Comparing these figures to the year before, there was a notable increase in the cycle from Jan 29, 2022, to Jan 28, 2023, which may raise concerns about the company's ability to generate cash from its sales operations during that time.
Looking back further, Shoe Carnival Inc experienced a relatively shorter cash conversion cycle on Jan 30, 2021, and Feb 1, 2020, standing at 94.61 days and 101.10 days, respectively. This indicates that the company was more adept at managing its inventory and collections in those periods, resulting in quicker cash turnover.
Overall, Shoe Carnival Inc's cash conversion cycle has displayed variability year over year, with some periods showing more efficient cash management than others. It is essential for the company to continue monitoring and improving this metric to enhance its liquidity and overall financial performance.
Peer comparison
Feb 3, 2024