Guess? Inc. (GES)

Guess? Inc.'s liquidity ratios show a fluctuating trend over the past five years. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has decreased slightly from 1.67 in 2020 to 1.55 in 2024. This indicates that the company may have a reduced ability to meet its short-term liabilities with its current assets.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, shows variability but has generally decreased over the period from 1.03 in 2021 to 0.85 in 2024. A decline in the quick ratio could suggest potential issues with inventory management or the ability to quickly convert assets into cash to meet immediate obligations.

The cash ratio, which measures the company's ability to cover short-term liabilities with its cash and cash equivalents, has also varied, with the ratio ranging from 0.36 in 2023 to 0.51 in 2022. However, the ratio has generally remained below 1, indicating that Guess? Inc. may have a limited ability to cover short-term obligations solely with its cash reserves.

Overall, while Guess? Inc. has maintained liquidity ratios above industry averages, there are indications of a slight decline in liquidity over the past five years. It is essential for the company to closely monitor and manage its liquidity position to ensure it can meet its short-term obligations effectively and efficiently.

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Additional liquidity measure

Based on the data provided, the cash conversion cycle for Guess? Inc. has exhibited fluctuations over the past five years.

In the most recent fiscal year, the company's cash conversion cycle stood at 69.87 days, reflecting an improvement compared to the previous year's cycle of 80.37 days. This indicates that Guess? Inc. was able to convert its investments in inventory and accounts receivable into cash more efficiently in the latest fiscal period.

Looking back over the five-year period, the cash conversion cycle reached its peak in the fiscal year ending January 30, 2021, at 88.56 days. Subsequently, there was a notable decrease in the cycle to 79.82 days by the end of February 1, 2020.

Overall, the trend in the cash conversion cycle for Guess? Inc. shows fluctuations but appears to have improved in the most recent year, indicating enhanced efficiency in managing its inventory and receivables to generate cash. This trend suggests that the company may be implementing better operational practices to shorten the cycle and optimize its cash flow management.