Designer Brands Inc (DBI)
Quick ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 49,173 | 58,766 | 72,691 | 59,581 | 86,564 |
| Short-term investments | US$ in thousands | — | — | — | 0 | 24,974 |
| Receivables | US$ in thousands | 83,590 | 77,763 | 199,826 | 196,049 | 89,151 |
| Total current liabilities | US$ in thousands | 622,271 | 636,126 | 758,917 | 752,683 | 680,031 |
| Quick ratio | 0.21 | 0.21 | 0.36 | 0.34 | 0.30 |
February 3, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($49,173K
+ $—K
+ $83,590K)
÷ $622,271K
= 0.21
The quick ratio of Designer Brands Inc has shown fluctuation over the past five years. The ratio was 0.30 in February 2020, increased to 0.34 in January 2021, further improved to 0.36 in January 2022, and then decreased to 0.21 in both January 2023 and February 2024.
A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations with its most liquid assets. Designer Brands Inc's recent quick ratios of 0.21 suggest a potential liquidity concern as the company may not have sufficient liquid assets to cover its current liabilities.
It is important for stakeholders to monitor the company's liquidity position closely to ensure that Designer Brands Inc can meet its short-term financial obligations effectively. Further analysis of the company's current assets composition and ability to generate cash flows may provide additional insights into its liquidity management.
Peer comparison
Feb 3, 2024