Buckle Inc (BKE)

Quick ratio

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Cash	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
Receivables	US$ in thousands	8,697	12,648	12,087	2,823	3,136
Total current liabilities	US$ in thousands	221,456	226,043	248,541	206,359	172,641
Quick ratio		1.35	1.26	1.12	1.57	1.37

February 3, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($268,213K + $22,210K + $8,697K) ÷ $221,456K
= 1.35

The quick ratio of Buckle Inc has shown a fluctuating trend over the past five years. The ratio has ranged from a low of 1.12 in January 2022 to a high of 1.57 in January 2021. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets, excluding inventory.

An ideal quick ratio is generally considered to be 1 or higher, indicating that the company can cover its current liabilities with its quick assets. Buckle Inc's quick ratio has consistently remained above 1 in all five years, suggesting that the company has been able to meet its short-term obligations without relying heavily on inventory.

The increase in the quick ratio from 1.12 in January 2022 to 1.26 in January 2023 indicates an improvement in the company's liquidity position. However, the ratio decreased to 1.35 in February 2024, which may indicate a slightly weakened liquidity position compared to the previous year. Overall, Buckle Inc's quick ratio has generally been at a healthy level, indicating a strong ability to meet short-term obligations with its liquid assets.