Shoe Carnival Inc (SCVL)
Cash conversion cycle
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 167.60 | 178.43 | 196.05 | 184.14 | 179.45 | 176.52 | 173.15 | 155.48 | 129.54 | 131.50 | 148.51 | 125.86 | 122.19 | 144.87 | 157.16 | 167.60 | 130.70 | 150.51 | 170.62 | 146.85 |
| Days of sales outstanding (DSO) | days | 0.80 | 0.96 | 1.20 | 0.92 | 0.88 | 2.21 | 3.00 | 4.00 | 3.88 | 2.88 | 2.42 | 2.36 | 2.65 | 3.20 | 2.59 | 2.48 | 0.96 | 0.87 | 0.86 | 0.71 |
| Number of days of payables | days | 28.19 | 20.80 | 37.08 | 26.40 | 36.24 | 39.75 | 51.13 | 52.65 | 31.38 | 30.58 | 46.51 | 47.98 | 30.23 | 26.88 | 68.17 | 49.64 | 30.56 | 33.38 | 54.90 | 28.67 |
| Cash conversion cycle | days | 140.21 | 158.58 | 160.17 | 158.65 | 144.08 | 138.98 | 125.03 | 106.82 | 102.04 | 103.79 | 104.42 | 80.24 | 94.61 | 121.18 | 91.58 | 120.43 | 101.10 | 118.00 | 116.58 | 118.89 |
February 3, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 167.60 + 0.80 – 28.19
= 140.21
The cash conversion cycle of Shoe Carnival Inc has shown some fluctuations over the past 20 periods. The trend indicates that Shoe Carnival Inc has been experiencing some variability in its efficiency in managing its working capital.
On average, the cash conversion cycle has been around 120 days, which means it takes Shoe Carnival Inc about 120 days to convert its investments in inventory and other resources back into cash. This can be seen as a relatively long cash conversion cycle, indicating that the company may be tying up its capital in inventory and accounts receivable for an extended period before realizing cash inflows.
The highest cash conversion cycle observed was 160.17 days, which indicates a significant delay in converting investments into cash during that particular period. Conversely, the lowest cash conversion cycle recorded was 80.24 days, reflecting a period of improved efficiency in managing working capital.
Overall, Shoe Carnival Inc should aim to optimize its cash conversion cycle by streamlining its inventory management and accounts receivable processes to reduce the time it takes to convert investments into cash. This would help free up capital for other uses and improve the company's overall liquidity and financial performance.
Peer comparison
Feb 3, 2024