BJs Wholesale Club Holdings Inc (BJ)
Quick ratio
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 28,272 | 36,049 | 36,049 | 33,915 | 33,915 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | 234,769 | — | — | 239,746 |
| Total current liabilities | US$ in thousands | 2,534,080 | 2,468,050 | 2,468,050 | 2,545,340 | 2,545,340 |
| Quick ratio | 0.01 | 0.11 | 0.01 | 0.01 | 0.11 |
January 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($28,272K
+ $—K
+ $—K)
÷ $2,534,080K
= 0.01
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. Looking at the historical quick ratio of BJs Wholesale Club Holdings Inc from January 28, 2023, to January 31, 2025, we observe a consistent pattern of low values, ranging from 0.01 to 0.11.
A quick ratio of 0.11 indicates that the company has $0.11 of liquid assets available to cover every $1 of current liabilities, reflecting a relatively weak liquidity position. On the other hand, a quick ratio of 0.01 suggests that for every $1 of current liabilities, the company only has $0.01 of liquid assets on hand, indicating a significant challenge in meeting short-term obligations.
The sustained low quick ratio over the period raises concerns about the company's ability to manage its short-term financial commitments efficiently. It may indicate potential cash flow issues or inefficiencies in managing working capital. Investors and creditors typically prefer to see a quick ratio above 1.0, as it implies a healthier liquidity position. However, the consistently low quick ratio of BJs Wholesale Club Holdings Inc highlights the need for close monitoring of its liquidity management strategies to ensure sustainable operations and financial health.
Peer comparison
Jan 31, 2025