PVH Corp (PVH)

Quick ratio

		Feb 28, 2025	Feb 29, 2024	Feb 4, 2024	Feb 28, 2023	Jan 29, 2023
Cash	US$ in thousands	748,000	707,600	707,600	550,700	550,700
Short-term investments	US$ in thousands	—	-135,000	—	700	—
Receivables	US$ in thousands	—	—	793,300	—	923,700
Total current liabilities	US$ in thousands	2,741,800	2,771,500	2,771,500	2,767,500	2,767,500
Quick ratio		0.27	0.21	0.54	0.20	0.53

February 28, 2025 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($748,000K + $—K + $—K) ÷ $2,741,800K
= 0.27

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 the company may have difficulty covering its short-term liabilities without relying on the sale of inventory.

PVH Corp's quick ratio has fluctuated over the years, ranging from a low of 0.20 in February 2023 to a high of 0.54 in February 2024. As of February 28, 2025, the quick ratio stands at 0.27.

The downward trend from 0.54 to 0.27 suggests that PVH Corp may be facing challenges in maintaining sufficient liquid assets to cover its short-term liabilities. It is important for investors and creditors to monitor this ratio closely to assess the company's liquidity position and ability to meet its financial obligations in the short term.