Guess? Inc. (GES)
Quick ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 360,285 | 275,765 | 415,565 | 469,110 | 284,613 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 314,769 | 341,939 | 328,856 | 314,147 | 327,281 |
| Total current liabilities | US$ in thousands | 791,557 | 763,052 | 817,874 | 762,539 | 638,413 |
| Quick ratio | 0.85 | 0.81 | 0.91 | 1.03 | 0.96 |
February 3, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($360,285K
+ $—K
+ $314,769K)
÷ $791,557K
= 0.85
The quick ratio of Guess? Inc. has fluctuated over the past five years, ranging from a low of 0.81 in January 2023 to a high of 1.03 in January 2021. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets. A higher quick ratio indicates that the company has more short-term assets available to cover its current liabilities.
In the most recent year, as of February 3, 2024, Guess? Inc. had a quick ratio of 0.85, which is lower than the previous year's quick ratio of 0.81. This suggests a slight decrease in the company's ability to meet its short-term obligations with its most liquid assets. Although the quick ratio is below 1, indicating that the company may have difficulty meeting its immediate liabilities with its current liquid assets alone, the trend over the past few years indicates some variability but overall stability in the company's short-term liquidity position. Further analysis of the components of current assets and liabilities would provide more insight into the company's liquidity management.