Academy Sports Outdoors Inc (ASO)
Quick ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|
| Cash | US$ in thousands | 347,920 | 337,145 | 485,998 | 377,604 |
| Short-term investments | US$ in thousands | — | — | — | — |
| Receivables | US$ in thousands | 19,371 | 16,503 | 19,718 | 17,306 |
| Total current liabilities | US$ in thousands | 879,858 | 1,038,720 | 1,127,110 | 1,167,090 |
| Quick ratio | 0.42 | 0.34 | 0.45 | 0.34 |
February 3, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($347,920K
+ $—K
+ $19,371K)
÷ $879,858K
= 0.42
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher is generally considered healthy, indicating that a company can cover its short-term liabilities without relying on the sale of inventory.
Analyzing Academy Sports Outdoors Inc's quick ratio over the past four years, we observe fluctuating trends. The quick ratio was 0.42 as of February 3, 2024, showing a slight improvement from the previous year. However, it still indicates that the company may have difficulty meeting its short-term obligations with its quick assets alone.
Comparing it to previous years, we see variations in the quick ratio. In 2023, the ratio was 0.34, while in 2022, it improved to 0.45 before dropping back to 0.34 in 2021.
The inconsistent pattern in Academy Sports Outdoors Inc's quick ratio suggests potential liquidity concerns and the need for further analysis to determine the underlying reasons for these fluctuations. It may be advisable for stakeholders to closely monitor the company's liquidity position and evaluate its ability to manage short-term obligations effectively.
Peer comparison
Feb 3, 2024