Buckle Inc (BKE)

Cash ratio

		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 and cash equivalents	US$ in thousands	268,213	311,657	275,583	254,433	252,077	302,180	266,731	250,073	253,970	468,733	406,714	393,153	318,789	331,923	265,714	185,037	220,969	213,836	178,041	183,939
Short-term investments	US$ in thousands	22,210	23,446	23,714	23,066	20,997	22,902	17,387	12,895	12,926	11,302	8,592	697	3,359	7,410	12,637	17,661	12,532	31,946	52,051	53,659
Total current liabilities	US$ in thousands	221,456	216,164	196,775	206,804	226,043	240,105	216,280	223,713	248,541	239,295	226,103	234,041	206,359	203,283	173,150	138,444	172,641	178,661	166,608	167,063
Cash ratio		1.31	1.55	1.52	1.34	1.21	1.35	1.31	1.18	1.07	2.01	1.84	1.68	1.56	1.67	1.61	1.46	1.35	1.38	1.38	1.42

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 of Buckle Inc has shown fluctuations over the past few years. The cash ratio measures a company's ability to cover its short-term obligations with its most liquid assets, cash, and cash equivalents.

From November 2019 to February 2024, the cash ratio has ranged from 1.07 to 2.01, with an average of approximately 1.51. The highest cash ratio of 2.01 was recorded in October 2021, indicating that Buckle Inc had a higher level of cash and cash equivalents relative to its current liabilities at that time.

Overall, a cash ratio above 1 suggests that the company is in a strong position to cover its short-term liabilities with its available cash. A declining trend in the cash ratio from its peak in October 2021 to February 2024 may indicate a decrease in Buckle Inc's liquid assets relative to its short-term obligations. However, the cash ratio has remained above 1 throughout the period, indicating that the company has generally maintained a healthy level of liquidity to meet its immediate financial commitments.