Guess? Inc. (GES)
Liquidity ratios
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.55 | 1.47 | 1.47 | 1.46 | 1.59 | 1.57 | 1.45 | 1.35 | 1.57 | 1.58 | 1.77 | 1.74 | 1.62 | 1.54 | 1.47 | 1.54 | 1.67 | 1.52 | 1.44 | 1.42 |
| Quick ratio | 0.85 | 0.70 | 0.72 | 0.71 | 0.81 | 0.67 | 0.63 | 0.58 | 0.91 | 0.89 | 1.06 | 1.04 | 1.03 | 0.91 | 0.79 | 0.91 | 0.96 | 0.62 | 0.63 | 0.56 |
| Cash ratio | 0.46 | 0.29 | 0.35 | 0.36 | 0.36 | 0.24 | 0.23 | 0.19 | 0.51 | 0.49 | 0.64 | 0.58 | 0.62 | 0.50 | 0.45 | 0.58 | 0.45 | 0.17 | 0.19 | 0.17 |
The current ratio for Guess? Inc. has been relatively stable over the past few quarters, ranging from 1.35 to 1.77, with an average of approximately 1.54. This indicates that the company has sufficient current assets to cover its current liabilities, with a slight fluctuation in liquidity levels.
On the other hand, the quick ratio shows more variability, ranging from 0.58 to 1.06, with an average of around 0.85. This ratio considers only the most liquid assets to cover current liabilities, excluding inventory. The downward trends in the quick ratio suggest that the company may have been relying more on inventory to meet its short-term obligations, which could impact liquidity in the short term.
The cash ratio for Guess? Inc. has also shown fluctuations, ranging from 0.17 to 0.64 with an average of approximately 0.39. This ratio indicates the company's ability to cover current liabilities using only cash and cash equivalents. The increasing trend in the cash ratio over the quarters suggests an improvement in the company's ability to meet short-term obligations with readily available cash resources.
Overall, while the current ratio indicates a generally healthy liquidity position for Guess? Inc., the downward trend in the quick ratio may warrant further analysis to understand the composition of current assets and potential implications for short-term liquidity management. The increasing trend in the cash ratio is a positive sign of enhanced liquidity and cash management by the company.
Additional liquidity measure
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 70.00 | 86.59 | 80.46 | 77.75 | 80.31 | 86.39 | 78.03 | 83.26 | 81.35 | 93.20 | 85.54 | 94.83 | 88.56 | 80.82 | 85.11 | 78.66 | 79.82 | 98.51 | 91.56 | 93.90 |
The cash conversion cycle of Guess? Inc. has fluctuated over the periods provided, ranging from a low of 70.00 days to a high of 98.51 days. The cash conversion cycle represents the time it takes for a company to convert its inventory into cash received from customers.
A lower cash conversion cycle indicates that the company is able to efficiently manage its working capital, turning inventory into cash quickly. On the other hand, a higher cash conversion cycle suggests that the company is taking longer to sell its inventory and collect cash from customers, potentially tying up resources and affecting liquidity.
Overall, it is important for Guess? Inc. to analyze the factors contributing to the fluctuations in its cash conversion cycle and implement strategies to optimize working capital management to ensure efficient operations and maintain strong liquidity position.