Shoe Carnival Inc (SCVL)

Liquidity ratios

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
Current ratio 3.76 3.81 3.14 3.35 2.99 2.84 2.52 2.36 2.88 3.06 2.54 2.31 2.71 2.72 2.02 2.23 2.69 2.64 2.21 2.66
Quick ratio 0.89 0.61 0.33 0.35 0.42 0.34 0.39 0.56 0.95 1.24 0.88 0.91 0.87 0.44 0.43 0.13 0.53 0.28 0.23 0.19
Cash ratio 0.87 0.59 0.30 0.33 0.40 0.29 0.33 0.49 0.86 1.18 0.84 0.87 0.81 0.37 0.39 0.09 0.51 0.26 0.21 0.18

Shoe Carnival Inc's liquidity ratios have shown fluctuations over the past few periods. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has generally been above 2, indicating a strong liquidity position. However, there have been variations within this metric, with the ratio ranging from 2.36 to 3.81.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has exhibited greater volatility. Although the quick ratio has occasionally fallen below 1, suggesting potential liquidity challenges, it remains generally close to the current ratio. This indicates that inventory is an important component of Shoe Carnival Inc's liquid assets.

The cash ratio, reflecting the company's ability to cover its current liabilities with its cash and cash equivalents, has also experienced fluctuations. While the ratio has mostly remained above 0.5, indicating a solid cash position, there have been periods where it fell below this threshold. This suggests that Shoe Carnival Inc may have relied more on non-cash assets to meet its short-term obligations during those periods.

In conclusion, Shoe Carnival Inc has generally maintained a strong liquidity position, as reflected in its current ratio and cash ratio. However, the fluctuating quick ratio highlights potential variability in the company's ability to quickly cover its liabilities without relying on inventory. It may be important for stakeholders to monitor these ratios closely to assess the company's ongoing liquidity management.

Additional liquidity measure

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
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

The cash conversion cycle of Shoe Carnival Inc has shown some fluctuations over the past few reporting periods. The cash conversion cycle measures the time it takes for a company to convert its investment in inventory and other resources into cash received from sales.

From February 3, 2024, to October 28, 2023, the cash conversion cycle decreased from 158.58 days to 140.21 days, indicating an improvement in the efficiency of converting resources into cash. However, this improvement was not sustained as the cycle increased to 160.17 days by July 29, 2023.

Looking further back, there was a decreasing trend from January 30, 2021, to October 31, 2020, reaching a low of 80.24 days. This suggests the company was managing its inventory, accounts receivable, and accounts payable efficiently during that period.

Overall, the cash conversion cycle of Shoe Carnival Inc has exhibited variability, with some periods of improvement and others of decline. The company should continue to focus on managing its working capital effectively to ensure a healthy cash conversion cycle going forward.