Signet Jewelers Ltd (SIG)
Quick ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,378,700 | 1,166,800 | 1,418,300 | 1,172,500 | 374,500 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 18,800 | 24,100 | 43,100 | 140,400 | 38,800 |
| Total current liabilities | US$ in thousands | 1,976,000 | 2,248,100 | 2,070,700 | 1,998,700 | 1,652,600 |
| Quick ratio | 0.71 | 0.53 | 0.71 | 0.66 | 0.25 |
February 3, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,378,700K
+ $—K
+ $18,800K)
÷ $1,976,000K
= 0.71
Signet Jewelers Ltd's quick ratio has fluctuated over the past five years, ranging from a low of 0.25 in February 2020 to a high of 0.71 in both January 2022 and February 2024. The quick ratio indicates the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1.0 may suggest potential liquidity challenges, as it indicates that the company may have difficulty meeting its current liabilities without relying on selling inventory. Therefore, Signet Jewelers Ltd's quick ratio has shown some volatility, with improvements in recent years, but it is important for investors to closely monitor this metric to assess the company's short-term liquidity position.