Capri Holdings Ltd (CPRI)
Quick ratio
| 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 | US$ in thousands | 199,000 | 249,000 | 238,000 | 238,000 | 249,000 | 281,000 | 215,000 | 221,000 | 169,000 | 261,000 | 234,000 | 356,000 | 232,000 | 229,000 | 238,000 | 207,000 | 592,000 | 237,000 | 179,000 | 160,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 332,000 | 339,000 | 383,000 | 300,000 | 369,000 | 372,000 | 441,000 | 394,000 | 434,000 | 449,000 | 358,000 | 382,000 | 373,000 | 369,000 | 344,000 | 183,000 | 308,000 | 321,000 | 368,000 | 310,000 |
| Total current liabilities | US$ in thousands | 1,695,000 | 1,815,000 | 1,244,000 | 1,448,000 | 1,450,000 | 1,559,000 | 1,278,000 | 1,614,000 | 1,566,000 | 1,752,000 | 1,520,000 | 1,562,000 | 1,621,000 | 1,594,000 | 1,581,000 | 1,589,000 | 1,401,000 | 2,305,000 | 1,803,000 | 1,668,000 |
| 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 |
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 fluctuations over the periods presented in the table. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities.
Looking at the trend, the quick ratio has generally remained below 1, which indicates a potential risk in the company's ability to cover its current liabilities with its quick assets. The lowest quick ratio was observed in June 2020 at 0.25, suggesting a relatively weaker liquidity position at that time.
While there have been fluctuations in the quick ratio, it is important for stakeholders to monitor the trend over time to ensure that the company maintains a healthy liquidity position to meet its short-term obligations. It would be advisable for Capri Holdings Ltd to aim for a quick ratio consistently above 1 to demonstrate a stronger ability to cover its short-term liabilities with its liquid assets.
Peer comparison
Mar 31, 2024