Chewy Inc (CHWY)
Cash ratio
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 602,232 | 331,641 | 603,079 | 563,345 | 212,088 |
| Short-term investments | US$ in thousands | 531,785 | 346,944 | 0 | — | — |
| Total current liabilities | US$ in thousands | 2,110,880 | 1,827,720 | 1,644,880 | 1,380,860 | 1,100,540 |
| Cash ratio | 0.54 | 0.37 | 0.37 | 0.41 | 0.19 |
January 28, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($602,232K
+ $531,785K)
÷ $2,110,880K
= 0.54
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.
Chewy Inc's cash ratio has shown an improving trend over the past five years. As of January 28, 2024, the cash ratio stands at 0.54, reflecting a substantial increase from the ratio of 0.37 observed in both January 29, 2023, and January 30, 2022. This indicates that Chewy Inc's cash and cash equivalents have become more sufficient in relation to its short-term liabilities.
Comparing the latest cash ratio to historical data, it is evident that Chewy Inc has significantly strengthened its liquidity position over the years. The company's ability to cover short-term obligations with cash has improved, which may signify better financial health and lower risk of liquidity issues.
Overall, Chewy Inc's increasing cash ratio suggests a positive trend in its liquidity management and ability to meet short-term financial obligations.
Peer comparison
Jan 28, 2024