Buckle Inc (BKE)

Cash ratio

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Cash and cash equivalents	US$ in thousands	268,213	252,077	253,970	318,789	220,969
Short-term investments	US$ in thousands	22,210	20,997	12,926	3,359	12,532
Total current liabilities	US$ in thousands	221,456	226,043	248,541	206,359	172,641
Cash ratio		1.31	1.21	1.07	1.56	1.35

February 3, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($268,213K + $22,210K) ÷ $221,456K
= 1.31

The cash ratio measures a company's ability to cover its short-term liabilities using only its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet these obligations without relying on other current assets or borrowing.

Looking at Buckle Inc's cash ratio from 2020 to 2024, we can observe fluctuations in the company's liquidity position. The trend shows that the cash ratio peaked in 2021 at 1.56, indicating a robust ability to meet short-term obligations solely with cash on hand. However, in the following years, the cash ratio decreased, reaching its lowest point in 2022 at 1.07.

Although the cash ratio increased in 2023 and 2024, it remained below the level seen in 2021. This suggests that while Buckle Inc may have improved its liquidity position compared to 2022, it has not yet fully recovered to the exceptionally strong liquidity position seen in 2021.

Overall, the cash ratio trend for Buckle Inc indicates variability in its ability to cover short-term liabilities with available cash, showing fluctuations in liquidity over the years analyzed.