Capri Holdings Ltd (CPRI)
Quick ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 199,000 | 249,000 | 169,000 | 232,000 | 592,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 332,000 | 369,000 | 434,000 | 373,000 | 308,000 |
| Total current liabilities | US$ in thousands | 1,695,000 | 1,450,000 | 1,566,000 | 1,621,000 | 1,401,000 |
| Quick ratio | 0.31 | 0.43 | 0.39 | 0.37 | 0.64 |
March 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($199,000K
+ $—K
+ $332,000K)
÷ $1,695,000K
= 0.31
The quick ratio of Capri Holdings Ltd has shown a declining trend over the past five years. As of March 31, 2024, the quick ratio stands at 0.31, indicating that the company may face difficulties in meeting its short-term obligations using its most liquid assets alone. This is a considerable decrease compared to the previous year's quick ratio of 0.43, suggesting a potential worsening in the company's ability to cover its short-term liabilities.
Moreover, when compared to the quick ratio of 0.39 in 2022 and 0.37 in 2021, the current ratio continues on a downward trajectory. The sharp decline from the relatively healthier quick ratio of 0.64 in 2020 reflects a significant deterioration in the company's liquidity position over the past few years.
Overall, Capri Holdings Ltd's quick ratio indicates a weakened liquidity position, raising concerns about its ability to meet its short-term financial obligations effectively. Further analysis and monitoring of the company's liquidity management may be necessary to address these challenges and improve its financial health.
Peer comparison
Mar 31, 2024