BJs Wholesale Club Holdings Inc (BJ)

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 0.73 0.73 0.71 0.70 0.67 0.72 0.73 0.80 0.76 0.76 0.70 0.71 0.72 0.72 0.80 0.81 0.75 0.75 0.79 0.80
Quick ratio 0.11 0.09 0.09 0.09 0.11 0.11 0.15 0.11 0.11 0.14 0.12 0.15 0.11 0.11 0.19 0.19 0.13 0.11 0.12 0.13
Cash ratio 0.01 0.01 0.01 0.01 0.01 0.01 0.07 0.02 0.02 0.04 0.02 0.05 0.02 0.02 0.10 0.08 0.01 0.01 0.02 0.02

Based on the provided data, the liquidity ratios of BJs Wholesale Club Holdings Inc show some fluctuations over the periods observed.

The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has ranged between 0.67 and 0.81. However, throughout the periods, the current ratio has generally been below 1, indicating that the company may have had difficulties meeting its short-term obligations with its current assets alone.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, ranged from 0.09 to 0.19. This ratio also consistently remained below 1, suggesting that the company may face challenges in meeting its immediate liabilities without relying on selling inventory.

The cash ratio, the most conservative liquidity measure that considers only cash and cash equivalents to cover current liabilities, fluctuated between 0.01 and 0.10. This ratio indicates the company's ability to meet its short-term obligations using only cash resources, with some periods showing a stronger cash position than others.

Overall, the liquidity ratios of BJs Wholesale Club Holdings Inc suggest that the company may have had some challenges in maintaining a strong liquidity position, as indicated by consistently low ratios across the periods analyzed. This could potentially signal a need for effective cash flow management and strategic planning to enhance the company's short-term financial stability.

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 10.37 12.04 11.01 9.78 8.74 8.25 7.35 9.48 7.32 5.05 4.04 7.49 10.47 7.26 4.33 6.23 15.72 15.33 12.28 14.07

The cash conversion cycle of BJs Wholesale Club Holdings Inc has varied over the analyzed periods. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Based on the data provided:
- The highest cash conversion cycle was 15.72 days on February 1, 2020, and 15.33 days on November 2, 2019, indicating a longer period for the company to convert its resources into cash.
- The lowest cash conversion cycle was 4.04 days on July 31, 2021, suggesting a more efficient conversion of investments into cash flows.
- Interestingly, there was a noticeable decrease in the cash conversion cycle from 15.33 days on November 2, 2019, to 4.04 days on July 31, 2021, indicating improved efficiency in managing inventory and other resources to generate cash.

Overall, the trend in the cash conversion cycle of BJs Wholesale Club Holdings Inc shows fluctuations, but with periods of more efficient cash conversion. This analysis highlights the importance of managing inventory, receivables, and payables effectively to optimize the company's cash flow operations.