Guess? Inc. (GES)
Quick ratio
| 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 | US$ in thousands | 360,285 | 244,103 | 302,626 | 298,642 | 275,765 | 174,065 | 174,372 | 147,897 | 415,565 | 391,065 | 458,914 | 395,128 | 469,110 | 365,259 | 327,970 | 419,415 | 284,613 | 110,095 | 131,060 | 112,933 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 314,769 | 340,784 | 318,364 | 286,314 | 341,939 | 319,342 | 301,659 | 295,430 | 328,856 | 321,296 | 299,915 | 306,297 | 314,147 | 300,432 | 246,471 | 239,532 | 327,281 | 300,197 | 292,985 | 250,521 |
| Total current liabilities | US$ in thousands | 791,557 | 836,394 | 857,305 | 829,033 | 763,052 | 732,727 | 760,319 | 758,491 | 817,874 | 804,638 | 715,152 | 676,675 | 762,539 | 735,373 | 730,480 | 722,224 | 638,413 | 656,767 | 673,352 | 645,800 |
| 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 |
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, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that a company may have difficulty covering its current liabilities with its liquid assets.
Guess? Inc.'s quick ratio has fluctuated over the past several quarters, ranging from 0.56 to 1.06. The highest quick ratio of 1.06, observed in the third quarter of fiscal year 2021, indicates that the company had more than enough liquid assets to cover its current liabilities at that time.
In the most recent quarter, the quick ratio stood at 0.85, suggesting that Guess? Inc. may have faced some challenges in meeting its short-term obligations with its readily available assets. This could raise concerns about the company's liquidity position, as it may have a relatively lower cushion of liquid assets to cover its current liabilities.
Overall, the trend in Guess? Inc.'s quick ratio indicates some variability in its liquidity position over the quarters. Analysts and investors may want to monitor this ratio closely to assess the company's ability to manage its short-term financial obligations effectively.