Signet Jewelers Ltd (SIG)
Cash ratio
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 604,000 | 1,378,700 | 1,166,800 | 1,418,300 | 1,172,500 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,831,500 | 1,976,000 | 2,248,100 | 2,070,700 | 1,998,700 |
| Cash ratio | 0.33 | 0.70 | 0.52 | 0.68 | 0.59 |
February 1, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($604,000K
+ $—K)
÷ $1,831,500K
= 0.33
The cash ratio of Signet Jewelers Ltd has fluctuated over the past five years.
As of January 30, 2021, the company's cash ratio was 0.59, indicating that it had $0.59 of cash and cash equivalents for every $1 of current liabilities. This ratio increased to 0.68 by January 29, 2022, suggesting an improvement in the company's liquidity position.
However, by January 28, 2023, the cash ratio decreased to 0.52, indicating a lower level of liquidity compared to the previous year. This decrease could be a cause for concern, as it may signal potential difficulties in meeting short-term obligations using available cash resources.
On February 3, 2024, the cash ratio improved to 0.70, suggesting that the company had strengthened its liquidity position. A higher cash ratio is generally considered more favorable as it indicates a greater ability to cover short-term obligations with cash on hand.
However, there was a notable decline in the cash ratio to 0.33 by February 1, 2025, indicating a significant reduction in liquidity compared to the previous year. This decline may warrant further investigation into the company's cash management practices and financial health.
Overall, the fluctuating trend in Signet Jewelers Ltd's cash ratio over the past five years highlights the importance of closely monitoring liquidity levels to ensure the company can meet its short-term obligations effectively.