Burlington Stores Inc (BURL)
Cash ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 925,359 | 872,623 | 1,091,090 | 1,380,280 | 403,074 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,028,790 | 1,911,950 | 1,947,650 | 1,684,000 | 1,461,900 |
| Cash ratio | 0.46 | 0.46 | 0.56 | 0.82 | 0.28 |
February 3, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($925,359K
+ $—K)
÷ $2,028,790K
= 0.46
The cash ratio of Burlington Stores Inc has fluctuated over the past five years, ranging from 0.28 to 0.82. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations, while a lower ratio may suggest potential liquidity challenges.
In 2020, the cash ratio was at its lowest at 0.28, indicating a relatively weaker liquidity position. However, there was a significant improvement in 2021 with the ratio increasing to 0.82, signaling a better ability to cover short-term liabilities with cash on hand.
Subsequently, the ratio decreased in 2022 to 0.56 but remained above the 2020 level, indicating continued improvements in liquidity. In the most recent years, 2023 and 2024, the cash ratio remained consistent at 0.46, suggesting a stable liquidity position.
Overall, while the cash ratio of Burlington Stores Inc has varied throughout the years, the company has shown an overall improvement in liquidity since 2020, with a notable spike in 2021, indicating a strengthened ability to meet short-term financial obligations with its cash reserves.
Peer comparison
Feb 3, 2024