BJs Wholesale Club Holdings Inc (BJ)

Cash ratio

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Cash and cash equivalents	US$ in thousands	36,049	33,915	45,436	43,518	30,204
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	2,468,050	2,545,340	2,002,480	2,031,210	1,801,420
Cash ratio		0.01	0.01	0.02	0.02	0.02

February 3, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($36,049K + $—K) ÷ $2,468,050K
= 0.01

The cash ratio of BJs Wholesale Club Holdings Inc has remained relatively stable over the past five years, ranging between 0.01 and 0.02. The cash ratio measures a company's ability to cover its short-term liabilities using only its cash and cash equivalents.

With a cash ratio consistently close to 0.01 or 0.02, BJs appears to have a relatively low level of cash reserves compared to its current liabilities. This suggests that the company may have limited ability to cover its short-term obligations with its readily available cash.

It is important to note that a low cash ratio does not necessarily indicate financial distress, as companies may have other liquid assets or access to credit lines to fulfill their short-term obligations. However, investors and stakeholders may want to monitor BJs' cash position closely to ensure it remains sufficient to address any potential liquidity challenges that may arise.