Chewy Inc (CHWY)
Quick ratio
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 602,232 | 331,641 | 603,079 | 563,345 | 212,088 |
| Short-term investments | US$ in thousands | 531,785 | 346,944 | 0 | — | — |
| Receivables | US$ in thousands | 154,043 | 126,349 | 126,010 | 122,568 | 81,104 |
| Total current liabilities | US$ in thousands | 2,110,880 | 1,827,720 | 1,644,880 | 1,380,860 | 1,100,540 |
| Quick ratio | 0.61 | 0.44 | 0.44 | 0.50 | 0.27 |
January 28, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($602,232K
+ $531,785K
+ $154,043K)
÷ $2,110,880K
= 0.61
The quick ratio, also known as the acid-test ratio, measures a company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory. Chewy Inc's quick ratio has shown improvement over the years, increasing from 0.27 in 2020 to 0.61 in 2024.
A quick ratio of 0.61 as of January 28, 2024, indicates that for every dollar of current liabilities, Chewy Inc has $0.61 of liquid assets readily available to cover those obligations. This suggests that the company has strengthened its liquidity position compared to previous years.
However, it is important to note that the quick ratio of 0.61 may still be considered relatively low, potentially signaling some level of dependency on inventory to meet short-term obligations. While the increasing trend is positive, investors and creditors may prefer a quick ratio closer to 1.0 as a safer indication of liquidity.
Overall, Chewy Inc's improving quick ratio reflects enhanced liquidity management in recent years, but continued monitoring and further improvement may be necessary to ensure robust financial health and the ability to meet short-term obligations effectively.
Peer comparison
Jan 28, 2024