Kohls Corp (KSS)
Cash ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 183,000 | 153,000 | 1,587,000 | 2,271,000 | 723,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,612,000 | 3,115,000 | 3,286,000 | 3,022,000 | 2,769,000 |
| Cash ratio | 0.07 | 0.05 | 0.48 | 0.75 | 0.26 |
February 3, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($183,000K
+ $—K)
÷ $2,612,000K
= 0.07
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 stronger ability to cover these obligations.
Looking at Kohl's Corp's cash ratio over the past five years, we observe fluctuations in the ratio. The cash ratio has ranged from 0.05 to 0.75, with the lowest ratio observed in January 28, 2023, and the highest observed in January 29, 2022.
The significant drop in the cash ratio in January 28, 2023, suggests a potential liquidity strain for the company during that period. However, the sharp increase in the ratio in January 29, 2022, indicates an improvement in the company's liquidity position.
The cash ratio of 0.07 as of February 3, 2024, indicates that for every $1 of current liabilities, Kohl's Corp has $0.07 in cash and cash equivalents available. This suggests that the company may have a relatively lower level of liquidity compared to the previous year.
Overall, fluctuations in the cash ratio can be influenced by various factors such as changes in operating cash flows, investment decisions, and debt management strategies. It is essential for investors and stakeholders to monitor Kohl's Corp's cash ratio over time to assess its liquidity and financial stability.
Peer comparison
Feb 3, 2024