Foot Locker Inc (FL)

Quick ratio

Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020
Cash US$ in thousands 297,000 536,000 804,000 1,680,000 907,000
Short-term investments US$ in thousands 337,000
Receivables US$ in thousands 160,000 160,000 134,000 124,000 100,000
Total current liabilities US$ in thousands 1,291,000 1,610,000 1,735,000 1,644,000 1,194,000
Quick ratio 0.35 0.43 0.54 1.30 0.84

February 3, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($297,000K + $—K + $160,000K) ÷ $1,291,000K
= 0.35

The quick ratio for Foot Locker Inc has shown a declining trend over the past five years, decreasing from 1.30 in January 2021 to 0.35 in February 2024. This indicates a potential weakening in the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 suggests that Foot Locker may have difficulty in covering its current liabilities without relying on selling inventory or raising additional funds.

It is worth noting that a quick ratio of 0.35 in February 2024 is significantly lower than in previous years, which may raise concerns about the company's liquidity position. Further analysis of Foot Locker's current assets, particularly its cash and near-cash equivalents, would be essential to understand the factors contributing to this declining trend and to assess the company's short-term financial health accurately.


Peer comparison

Feb 3, 2024