Capri Holdings Ltd (CPRI)

Liquidity ratios

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 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
Current ratio — 1.21 0.93 0.95 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
Quick ratio — 0.44 0.29 0.32 0.35 0.34 0.54 0.39 0.43 0.42 0.51 0.39 0.39 0.41 0.41 0.49 0.37 0.39 0.37 0.25
Cash ratio — 0.25 0.10 0.13 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

Capri Holdings Ltd's liquidity ratios have shown fluctuations over the past few years. The current ratio has generally been increasing from June 30, 2020, to December 31, 2023, indicating a strengthening ability to meet short-term obligations. However, there was a decline in the current ratio at March 31, 2024. The quick ratio has also displayed variability, with some improvement observed until September 30, 2023, but a decrease in the most recent period. The cash ratio has been relatively stable, with the highest value reported at December 31, 2024. It is important for the company to carefully monitor these ratios to ensure adequate liquidity to support its operations and financial stability.

Additional liquidity measure

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 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
Cash conversion cycle days 31.60 95.79 128.90 116.86 125.72 153.74 175.18 156.74 135.54 147.90 173.99 160.42 131.40 107.20 107.79 93.55 89.42 103.36 107.35 81.37

The cash conversion cycle is a vital metric that measures how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales. For Capri Holdings Ltd, the trend in the cash conversion cycle shows fluctuations over the analyzed period.

At the beginning of the observation period, the cash conversion cycle stood at 81.37 days on June 30, 2020, reflecting the efficiency of the company in managing its working capital. However, over time, the cycle increased to a peak of 175.18 days on September 30, 2023, indicating potential challenges in managing inventory and collecting payments from customers.

After the peak, the cash conversion cycle gradually decreased, reaching 31.60 days on March 31, 2025, suggesting improvements in working capital management. The significant reduction from the peak to the latest reported period indicates the company may have optimized its inventory levels and enhanced its collection processes.

Analyzing the cash conversion cycle provides valuable insights into Capri Holdings Ltd's operational efficiency and liquidity management. By monitoring this metric over time, investors and stakeholders can assess the company's ability to generate cash flow from its core operations and identify areas for improvement in working capital management.