Dick’s Sporting Goods Inc (DKS)
Cash ratio
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,689,940 | 1,801,220 | 1,801,220 | 1,924,390 | 1,924,390 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,080,060 | 2,752,390 | 2,752,390 | 2,641,450 | 2,641,450 |
| Cash ratio | 0.55 | 0.65 | 0.65 | 0.73 | 0.73 |
January 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,689,940K
+ $—K)
÷ $3,080,060K
= 0.55
Based on the provided data, Dick’s Sporting Goods Inc's cash ratio has been consistently decreasing over time. The cash ratio is a measure of a company's ability to cover its short-term liabilities with its available cash and cash equivalents.
The cash ratio of Dick’s Sporting Goods Inc was 0.73 as of January 28, 2023, and January 31, 2023. It decreased to 0.65 as of January 31, 2024 and February 3, 2024, and further declined to 0.55 as of January 31, 2025.
A decreasing cash ratio may indicate that the company's liquidity position is weakening, as it suggests a lower level of cash reserves relative to its current liabilities. This trend warrants further investigation into the company's cash management practices, operational efficiency, and overall financial health.
Peer comparison
Jan 31, 2025