Kohl's Corporation (KSS)
Quick ratio
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 134,000 | 183,000 | 183,000 | 153,000 | 153,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | 167,000 | — | — | 210,000 |
| Total current liabilities | US$ in thousands | 3,131,000 | 2,612,000 | 2,612,000 | 3,115,000 | 3,115,000 |
| Quick ratio | 0.04 | 0.13 | 0.07 | 0.05 | 0.12 |
January 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($134,000K
+ $—K
+ $—K)
÷ $3,131,000K
= 0.04
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 meeting its short-term liabilities.
Analyzing Kohl's Corporation's quick ratio over the specified periods shows fluctuating values. As of January 28, 2023, the quick ratio stood at 0.12, suggesting that Kohl's had $0.12 of liquid assets to cover each dollar of its current liabilities. This ratio decreased significantly to 0.05 by January 31, 2023, indicating a potential liquidity issue.
In the subsequent periods, the quick ratio improved slightly to 0.07 on January 31, 2024, and further increased to 0.13 by February 3, 2024. These improvements may indicate better liquidity management by the company during these periods.
However, the quick ratio declined again to 0.04 as of January 31, 2025, suggesting a potential liquidity challenge for Kohl's at the end of the period.
Overall, the fluctuating quick ratio of Kohl's Corporation reflects variability in its ability to cover short-term liabilities with its most liquid assets. Investors and stakeholders should monitor this ratio to assess the company's liquidity position and financial health over time.
Peer comparison
Jan 31, 2025