Signet Jewelers Ltd (SIG)
Quick ratio
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 604,000 | 1,378,700 | 1,166,800 | 1,418,300 | 1,172,500 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 14,300 | 18,800 | 24,100 | 43,100 | 140,400 |
| Total current liabilities | US$ in thousands | 1,831,500 | 1,976,000 | 2,248,100 | 2,070,700 | 1,998,700 |
| Quick ratio | 0.34 | 0.71 | 0.53 | 0.71 | 0.66 |
February 1, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($604,000K
+ $—K
+ $14,300K)
÷ $1,831,500K
= 0.34
Signet Jewelers Ltd's quick ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, has shown some fluctuations over the years. As of January 30, 2021, the quick ratio was 0.66, indicating that the company had $0.66 in liquid assets available to cover each dollar of current liabilities.
By January 29, 2022, the quick ratio had improved slightly to 0.71, suggesting a better ability to meet short-term obligations. However, there was a drop in the quick ratio to 0.53 by January 28, 2023, indicating a potential liquidity challenge.
The quick ratio improved again to 0.71 by February 3, 2024, but it dropped significantly to 0.34 by February 1, 2025. This decrease in the quick ratio may raise concerns about the company's ability to meet its short-term obligations with its current liquid assets.
Overall, the trend in Signet Jewelers Ltd's quick ratio reveals some variability, indicating potential fluctuations in the company's liquidity position over the years, which may require further analysis to understand the underlying factors contributing to these changes.