Boot Barn Holdings Inc (BOOT)
Quick ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 75,847 | 18,193 | 20,674 | 73,148 | 69,563 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 20,232 | 13,145 | 11,867 | 12,771 | 17,259 |
| Total current liabilities | US$ in thousands | 312,808 | 374,842 | 336,468 | 221,656 | 312,625 |
| Quick ratio | 0.31 | 0.08 | 0.10 | 0.39 | 0.28 |
March 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($75,847K
+ $—K
+ $20,232K)
÷ $312,808K
= 0.31
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 excluding inventory. Boot Barn Holdings Inc's quick ratio has fluctuated over the past five years. At the end of fiscal year 2024, the quick ratio stood at 0.31, signifying that the company had $0.31 in liquid assets available to cover each dollar of current liabilities.
Comparing this to the previous years, the quick ratio was relatively low in fiscal year 2023 and 2022 at 0.08 and 0.10, respectively, indicating a potential liquidity concern as the company may struggle to meet its short-term obligations with its quick assets alone during those periods. Subsequently, there was a significant improvement in fiscal year 2021 with a quick ratio of 0.39, suggesting a better ability to pay off short-term obligations.
In fiscal year 2020, the quick ratio was 0.28, which was lower than 2021 but higher than 2023 and 2022. It indicates that the company had an adequate level of quick assets to cover its current liabilities relative to those years.
Overall, the trend in Boot Barn Holdings Inc's quick ratio shows fluctuations over the years, indicating varying levels of liquidity and the ability to meet short-term obligations with liquid assets excluding inventory. Investors and stakeholders may want to monitor this ratio to assess the company's short-term liquidity position and financial health.
Peer comparison
Mar 31, 2024