Kohls Corp (KSS)
Quick ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 183,000 | 153,000 | 1,587,000 | 2,271,000 | 723,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 167,000 | 210,000 | 190,000 | 789,000 | 15,000 |
| Total current liabilities | US$ in thousands | 2,612,000 | 3,115,000 | 3,286,000 | 3,022,000 | 2,769,000 |
| Quick ratio | 0.13 | 0.12 | 0.54 | 1.01 | 0.27 |
February 3, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($183,000K
+ $—K
+ $167,000K)
÷ $2,612,000K
= 0.13
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. It is calculated by dividing quick assets (cash, marketable securities, and accounts receivable) by current liabilities.
Analyzing Kohls Corp's quick ratio over the past five years, it is observed that there has been significant fluctuation in the company's ability to cover its short-term liabilities with its quick assets. In 2024, the quick ratio was 0.13, indicating that Kohls may face challenges meeting its immediate obligations using only its most liquid assets.
Comparing this to previous years, the quick ratio was relatively low in 2023 as well at 0.12. However, there was a notable improvement in 2022 with a quick ratio of 0.54, signifying a stronger ability to cover short-term liabilities. The highest quick ratio in the past five years was in 2021 at 1.01, indicating a very strong liquidity position at that time. In contrast, the quick ratio was lowest in 2020 at 0.27, suggesting lower liquidity relative to other years.
Overall, the trend in Kohls Corp's quick ratio shows fluctuation, with a notable decrease in liquidity in 2024 compared to the previous two years. Investors and stakeholders should closely monitor Kohls' liquidity position to ensure the company can meet its short-term obligations efficiently.
Peer comparison
Feb 3, 2024