Chewy Inc (CHWY)
Quick ratio
| Jan 31, 2025 | Jan 31, 2024 | Jan 28, 2024 | Jan 31, 2023 | Jan 29, 2023 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 595,765 | 602,232 | 602,232 | 330,441 | 331,641 |
| Short-term investments | US$ in thousands | 899 | 531,785 | 531,785 | 346,944 | 346,944 |
| Receivables | US$ in thousands | — | — | 154,043 | — | 126,349 |
| Total current liabilities | US$ in thousands | 2,206,720 | 2,110,880 | 2,110,880 | 1,769,350 | 1,827,720 |
| Quick ratio | 0.27 | 0.54 | 0.61 | 0.38 | 0.44 |
January 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($595,765K
+ $899K
+ $—K)
÷ $2,206,720K
= 0.27
The quick ratio of Chewy Inc, which measures the company's ability to meet its short-term obligations with its most liquid assets, has shown fluctuations over the past few years.
As of January 29, 2023, the quick ratio stood at 0.44, indicating that for every dollar of current liabilities, the company had $0.44 in quick assets that could be readily converted to cash to meet those liabilities. Over the next two years, there was a decline in the quick ratio to 0.38 as of January 31, 2023, suggesting a potential strain on the company's short-term liquidity.
However, there was a significant improvement in the quick ratio to 0.61 as of January 28, 2024, followed by a slight decrease to 0.54 by January 31, 2024. This improvement may indicate a better ability to cover short-term obligations with liquid assets compared to the previous periods.
Most recently, as of January 31, 2025, the quick ratio dropped to 0.27, signaling a decreased ability to meet short-term liabilities with available quick assets. This notable decline may raise concerns about Chewy Inc's short-term liquidity position and its ability to handle immediate financial obligations with its current assets.
In conclusion, the fluctuating trend in Chewy Inc's quick ratio reflects varying levels of liquidity over the years, with the company potentially facing challenges in meeting short-term obligations in some periods. Investors and stakeholders should consider monitoring this ratio closely to assess the company's short-term financial health.
Peer comparison
Jan 31, 2025