Signet Jewelers Ltd (SIG)

Cash ratio

Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020
Cash and cash equivalents US$ in thousands 1,378,700 1,166,800 1,418,300 1,172,500 374,500
Short-term investments US$ in thousands
Total current liabilities US$ in thousands 1,976,000 2,248,100 2,070,700 1,998,700 1,652,600
Cash ratio 0.70 0.52 0.68 0.59 0.23

February 3, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,378,700K + $—K) ÷ $1,976,000K
= 0.70

The cash ratio of Signet Jewelers Ltd has shown a fluctuating trend over the past five years. The ratio measures the company's ability to cover its current liabilities with its cash and cash equivalents.

In 2024, the cash ratio stands at 0.70, indicating that the company had $0.70 in cash and cash equivalents for every dollar of its current liabilities. This represents a significant improvement from the previous year's ratio of 0.52, suggesting a strengthened liquidity position.

Comparing the ratio to previous years, we observe a general upward trend since 2020. The ratio has increased steadily from 0.23 in 2020 to 0.70 in 2024, reflecting the company's enhanced ability to meet its short-term obligations using readily available cash resources.

Overall, the improving cash ratio of Signet Jewelers Ltd indicates a healthier liquidity position and a better ability to manage its short-term financial obligations over the years.