Guess? Inc. (GES)
Cash ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 360,285 | 275,765 | 415,565 | 469,110 | 284,613 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 791,557 | 763,052 | 817,874 | 762,539 | 638,413 |
| Cash ratio | 0.46 | 0.36 | 0.51 | 0.62 | 0.45 |
February 3, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($360,285K
+ $—K)
÷ $791,557K
= 0.46
The cash ratio of Guess? Inc. has fluctuated over the past five years, ranging from 0.36 to 0.62. The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a greater ability to cover short-term obligations.
In the most recent year, as of February 3, 2024, Guess? Inc. has a cash ratio of 0.46, showing a moderate improvement from the previous year but still lower than the ratios of 2022 and 2021. This suggests that the company may have relatively lower cash reserves compared to its short-term liabilities in 2024.
It is important for Guess? Inc. to closely monitor its cash reserves and manage its liquidity effectively to ensure it can meet its short-term financial obligations in a timely manner. Additionally, maintaining a healthy cash ratio can provide a buffer against unexpected financial challenges or downturns in the business environment.