Guess? Inc. (GES)
Quick ratio
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 187,696 | 360,285 | 360,285 | 275,765 | 275,765 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | 314,769 | — | — | 341,939 |
| Total current liabilities | US$ in thousands | 831,332 | 791,557 | 791,557 | 763,052 | 763,052 |
| Quick ratio | 0.23 | 0.85 | 0.46 | 0.36 | 0.81 |
January 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($187,696K
+ $—K
+ $—K)
÷ $831,332K
= 0.23
The Quick ratio is a measure of a company's ability to meet its short-term obligations using its most liquid assets. A ratio below 1 indicates that the company may have difficulty meeting its short-term obligations.
For Guess? Inc., the Quick ratio has shown fluctuation over the years. In January 2023, the Quick ratio was 0.81, indicating the company had $0.81 in liquid assets available to cover each $1 of current liabilities. This ratio decreased significantly to 0.36 by January 31, 2023, suggesting a potential liquidity issue.
However, there was a slight improvement by January 31, 2024, with the Quick ratio increasing to 0.46, but it was still below the ideal threshold of 1. The ratio improved further by February 3, 2024, reaching 0.85, which was closer to 1 and indicated better liquidity.
Unfortunately, by January 31, 2025, the Quick ratio decreased sharply to 0.23, suggesting a significant decline in the company's ability to cover its short-term obligations with its liquid assets.
Overall, the fluctuation in Guess? Inc.'s Quick ratio over the years indicates potential challenges in managing short-term liquidity and meeting immediate financial obligations. Investors and stakeholders should monitor this ratio closely to assess the company's financial health and liquidity position.