Capri Holdings Ltd (CPRI)

Liquidity ratios

Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019
Current ratio 0.95 1.06 1.60 1.33 1.29 1.34 1.63 1.29 1.21 1.18 1.10 1.09 0.95 0.94 1.03 0.94 1.35 0.77 1.05 1.03
Quick ratio 0.31 0.32 0.50 0.37 0.43 0.42 0.51 0.38 0.39 0.41 0.39 0.47 0.37 0.38 0.37 0.25 0.64 0.24 0.30 0.28
Cash ratio 0.12 0.14 0.19 0.16 0.17 0.18 0.17 0.14 0.11 0.15 0.15 0.23 0.14 0.14 0.15 0.13 0.42 0.10 0.10 0.10

Capri Holdings Ltd's liquidity ratios have shown some fluctuations over the past few quarters. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has been volatile, ranging from 0.77 to 1.63. In general, the current ratio has been above 1, indicating that the company has had sufficient current assets to cover its short-term liabilities in most periods.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also exhibited variability, ranging from 0.24 to 0.64. This indicates that Capri Holdings may have had some challenges in meeting its short-term obligations without relying on inventory in some quarters.

The cash ratio, which is the most conservative measure of liquidity as it only considers cash and cash equivalents, has also fluctuated, falling between 0.10 and 0.42. This implies that Capri Holdings may have had limited cash reserves to cover its immediate liabilities in certain periods.

Overall, while the current ratio has generally been above 1, suggesting a healthy liquidity position, the quick and cash ratios indicate that Capri Holdings may have faced some liquidity challenges in meeting its short-term obligations without relying on inventory or cash in certain quarters. Monitoring these ratios over time can provide insights into the company's ability to manage its liquidity effectively.

Additional liquidity measure

Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019
Cash conversion cycle days 58.09 70.88 80.80 71.04 67.22 73.15 87.50 79.44 69.81 60.54 55.93 53.28 54.04 67.12 69.06 48.06 52.78 73.55 89.98 90.24

The cash conversion cycle of Capri Holdings Ltd has shown fluctuations over the past 20 quarters. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash from sales.

Based on the data provided, we can observe that the cash conversion cycle ranged from a low of 48.06 days to a high of 90.24 days. The cycle reflects the efficiency of Capri Holdings Ltd in managing its cash flow and operating cycle.

The trend over time indicates that the company has experienced variations in its cash conversion cycle, with some quarters showing shorter cycles and others longer periods. It is essential to monitor this metric closely as a shorter cash conversion cycle implies that the company is able to generate cash more quickly from its operations, while a longer cycle may indicate inefficiencies in inventory management or challenges in collecting receivables.

Overall, analyzing the cash conversion cycle of Capri Holdings Ltd can provide insight into the company's working capital management and operational efficiency, helping stakeholders assess the company's financial health and performance.