Shoe Carnival Inc (SCVL)
Liquidity ratios
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 4.11 | 3.88 | 3.36 | 3.38 | 3.76 | 3.76 | 3.81 | 3.81 | 3.14 | 3.14 | 3.35 | 3.35 | 2.99 | 2.99 | 2.84 | 2.84 | 2.52 | 2.52 | 2.36 | 2.88 |
| Quick ratio | 0.94 | 0.67 | 0.53 | 0.47 | 0.89 | 0.87 | 0.59 | 0.61 | 0.30 | 0.33 | 0.33 | 0.35 | 0.40 | 0.42 | 0.29 | 0.34 | 0.33 | 0.39 | 0.49 | 0.86 |
| Cash ratio | 0.94 | 0.67 | 0.53 | 0.47 | 0.87 | 0.87 | 0.59 | 0.59 | 0.30 | 0.30 | 0.33 | 0.33 | 0.40 | 0.40 | 0.29 | 0.29 | 0.33 | 0.33 | 0.49 | 0.86 |
The liquidity ratios for Shoe Carnival Inc show a strong financial position in terms of its ability to meet short-term obligations.
1. Current Ratio: The current ratio has been consistently above 2 in recent years, indicating that Shoe Carnival has more than enough current assets to cover its current liabilities. The ratio improved steadily from 2.88 in January 2022 to 4.11 in January 2025, showing an increasing ability to meet short-term obligations.
2. Quick Ratio: The quick ratio measures the company's ability to meet short-term obligations without relying on inventory. While this ratio is generally lower than the current ratio, Shoe Carnival's quick ratio also exhibited an increasing trend over the years, from 0.86 in January 2022 to 0.94 in January 2025.
3. Cash Ratio: The cash ratio represents the company's ability to cover its current liabilities with its cash and cash equivalents. Shoe Carnival's cash ratio improved significantly over the years, from 0.86 in January 2022 to 0.94 in January 2025, indicating a strengthening ability to fulfill short-term financial obligations using cash reserves.
Overall, Shoe Carnival Inc's liquidity ratios indicate a healthy financial position with a strong ability to meet short-term obligations, improve liquidity, and manage working capital efficiently.
Additional liquidity measure
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 181.82 | 189.47 | 202.41 | 198.55 | 138.22 | 163.37 | 171.77 | 156.58 | 200.92 | 166.33 | 196.30 | 162.80 | 182.56 | 142.97 | 174.64 | 138.54 | 176.00 | 127.54 | 155.46 | 127.31 |
The cash conversion cycle for Shoe Carnival Inc fluctuated over the reported periods, with values ranging from 127.31 days to 202.41 days. This cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
A shorter cash conversion cycle is generally favorable as it indicates efficient management of working capital. On the other hand, a longer cycle may suggest inefficiencies in inventory management, collection of receivables, or payment of payables.
Shoe Carnival Inc experienced fluctuations in its cash conversion cycle, with some periods showing decreases while others showing increases. It is important for the company to analyze the underlying reasons behind these fluctuations and work towards optimizing its working capital management to improve efficiency and maximize cash flow generation.