Designer Brands Inc (DBI)
Liquidity ratios
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.25 | 1.18 | 1.23 | 1.29 | 1.24 | 1.43 | 1.35 | 1.32 | 1.20 | 1.10 | 1.04 | 1.08 | 1.04 | 0.93 | 1.15 | 1.30 | 1.32 | 1.44 | 1.42 | 1.50 |
| Quick ratio | 0.21 | 0.24 | 0.22 | 0.23 | 0.21 | 0.41 | 0.35 | 0.37 | 0.36 | 0.36 | 0.39 | 0.33 | 0.34 | 0.21 | 0.38 | 0.45 | 0.30 | 0.31 | 0.25 | 0.34 |
| Cash ratio | 0.08 | 0.08 | 0.07 | 0.08 | 0.09 | 0.09 | 0.07 | 0.07 | 0.10 | 0.09 | 0.13 | 0.06 | 0.08 | 0.14 | 0.31 | 0.34 | 0.16 | 0.18 | 0.12 | 0.20 |
The liquidity ratios of Designer Brands Inc indicate the company's ability to meet its short-term obligations and manage its cash flow effectively.
The current ratio has shown some fluctuations over the past several quarters, ranging from 1.04 to 1.43. While it generally remains above 1, indicating that the company has more current assets than current liabilities, the ratio has been trending slightly downwards in the most recent quarters. This suggests that the company may have a slightly weaker ability to cover its short-term liabilities with its current assets.
The quick ratio, which excludes inventory from current assets, has also exhibited variability, ranging from 0.21 to 0.45. It appears to be consistently lower than the current ratio, indicating that the company may have relatively higher levels of inventory compared to its ability to cover short-term obligations without relying on selling inventory.
The cash ratio reflects the company's ability to pay off its current liabilities using only its cash and cash equivalents. This ratio has also shown fluctuations, with values ranging from 0.06 to 0.34. The cash ratio seems to have improved in the most recent quarters, indicating an increased ability to cover short-term obligations with readily available cash.
Overall, while Designer Brands Inc has generally maintained liquidity ratios above key thresholds, fluctuations in these ratios suggest that the company's liquidity position has been somewhat variable over the analyzed periods. It is essential for the company to closely monitor and manage its liquidity to ensure it can meet its short-term obligations effectively.
Additional liquidity measure
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 58.93 | 63.51 | 64.46 | 69.60 | 65.74 | 83.65 | 80.65 | 74.84 | 64.94 | 64.35 | 63.92 | 69.80 | 75.31 | 39.93 | 42.38 | 47.94 | 58.15 | 69.07 | 72.42 | 73.45 |
The cash conversion cycle of Designer Brands Inc has shown fluctuations over the past several quarters. The cash conversion cycle measures how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From the data provided, we observe that the cash conversion cycle has ranged from a low of 39.93 days to a high of 83.65 days over the last few quarters. This indicates variability in the company's efficiency in managing its working capital.
A decreasing trend in the cash conversion cycle is generally favorable as it implies that the company is managing its inventory, accounts receivable, and accounts payable more efficiently, resulting in a shorter time to convert investments into cash.
On the other hand, an increasing trend in the cash conversion cycle could indicate potential issues such as slow inventory turnover, longer collection periods for receivables, or delayed payment to suppliers. These factors could tie up working capital and impact the company's liquidity and profitability.
Therefore, it is important for Designer Brands Inc to closely monitor and manage its cash conversion cycle to ensure optimization of working capital and efficient operations.